M.,
My 18 month old is allergic to dairy and soy. The proteins are really similar so it isn't unusual for someone who is allergic to one to be allergic to the other. My son also reacts to goats milk. He can drink rice milk because it isn't actually a milk, it is basically a juice, but I don't give much of it because it has no nutritional value and is really constipating. When I quit nursing, we switched to hypoallergenic formula as a source of protein, fat, calories, and calcium (what kids typically get from milk). My son is currently drinking Similac Alimentum and he is doing fine on it. You can get it in the grocery store or you can order it online - I get it here by the case http://www.i-medica.com/index.php?target=products&pro... and save about $7 a can by doing that. Over the course of a month, ordering it here saves me $100 or more over buying it in the store. If this boy is too sensitive for Alimentum, there is a "more" hypoallergenic formula. There are two brands: Neocate and Elecare. Both are special order. You can get it from a pharmacy or order it on-line (just google Neocate and you'll find it).
After you eliminate the allergens, it takes about a month for them to leave the system entirely and then it will take time for the skin to heal also. I use the Equate (Walmart) version of Cetaphil lotion and it works really well. Even as careful as I am with my son's diet, he's in daycare and occasionally eats something he shouldn't. When his skin breaks out, I use this lotion and it works really well. It is very soothing, doesn't burn when you put it on and really helps (I also break out in the dry, scaley patches so I speak from first hand experience here).
In my experience, pediatricians are a horrible source of info on food allergies in kids. My pediatric GI doctor wasn't really very helpful either. Food allergies can change over time and the allergy testing is pretty unreliable in babies. So the parents should watch the diet of the child and adjust it as necessary. My son went through a period where he couldn't tolerate eggs either but fortunately he outgrew that. You can find better info on the internet and from other parents than you can from doctors. It is almost like they don't believe in food allergies in babies. As the parent of a food-allergic baby, I can tell you they do exist and they are serious and can be very, very miserable.
If you or the parents need more info or just want sympathy, my email address is ____@____.com I have some helpful resources if you are interested.
T.