A downhole diffuser assembly comprising a diffuser adapted to reside within a carrier sub. The diffuser assembly includes an upper mounting member mountable within the carrier sub and having an fluid inlet port, and a lower section having a diffuser screen. A plurality of cutters are removably attached to the diffuser screen, wherein the cutters are radially oriented relative to a central axis of the diffuser screen. The cutters may extend internal or external to the diffuser screen, depending on the desired downhole conditions. In a preferred embodiment, a first set of cutters is mounted at a first selected height along the central axis of the diffuser screen, and wherein a second set of cutters is mounted at a second selected height along the central axis of the diffuser screen.