Sharon,
I have a 3 month old that had a similar problem. It looked absolutely horrible. I thought it was exczema based on my internet research, but when I took her to her the rx, it was diagnosed as dermatitis something. The important part is the treatment is the same. I am nursing, so first, I eliminated any dairy/processed food from my diet to address a possible dairy allergy. I took orally flaxseed oil and evening primrose oil and it came out beautifully in the breastmilk. On her skin she had olive oil and water baths only. This worked so well, that now the whole family no longer uses soap (except on private parts). Her skin was super dry and cracking, so I kept her constantly in castor oil, because of its many healing properties (google those). I used selson blue in her hair and around the edges, and again oiled her up after washing. Now her skin is beautiful and smooth, and I am so happy with the results. My skin is beautiful and healthy. It was quite a commitment to do this ritual daily, but it was worth the results. I am open to answering more questions offline if you like. Don't commit to this exzema diagnosis just yet. Get a 2nd opinion.
Best,
Ofie, Mommy of 15yr, 8yr, 6yr, 3month old