Hi Rob,
Both ingress and the outside router should see it as a single hop for LSP path i.e. both traceroute output should show only one LER address.
+---+ .1 .2 +----+ .1 .2 +----+.1 .2 +----+.1 .2 +---+
| A |--------------------| R1 |----------------| R2 |---------------| R3 |----------------| B |
+---+ 172.168.1.0/30 +----+ 10.8.1.0/30 +----+ 20.8.1.0/30 +----+ 58.8.1.0/30 +---+
|<----------------LSP--------------->|
Traceroute from A towards B should have:
[1] R1 interface address [172.68.1.2]
[2] R3 interface address towards R2 [20.8.1.2]
[3] B destination address [58.8.1.2]
Traceroute from R1 towards B should have:
[1] R3 interface address towards R2 [20.8.1.2]
[2] B destination address [58.8.1.2]
Regards
Surya