So I found this potion being sold in Old Ebonheart and since I'm playing with the Atronach birthsign I figured I could use this without the negative effect for obvious reasons.
Well apparently consuming this potion and waiting for the "stunted magicka" effect to wear off will result in an Atronach character without stunted magicka!
The effect is still listed but upon resting magicka will actually replenish.
It's probably a good idea to replace the effect in said potion (Llotham) with drain intelligence.
Cheers