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My daughter has eczema right now on her cheeks/chin and it looks just like the rash on your LO's face. Except she doesn't have it around her mouth area. The ped at first advised us to just keep moisturizing it with Vaseline. But it got so bad that she prescribed hydrocortisone (which cleared it up right away).

The first time I used it (2 weeks ago) I used it for 5 days and it looked maybe 75% better. But then it returned! So this time around, we were told to use it for 10 days straight. We're on day 3 now and it already looks like it's 90% cleared up. We used over the counter Bacitracin and an RX hydrocortisone (2.5%). The hydrocortisone works wonders. We saw an improvement rightg away (within 24 hrs).

@luckypenny: My daughter gets a rash like that from food sensitivities. For her, it's tomatoes, but I've noticed her leg eczema reacts to eggs. We've eliminated both and continued to used coconut oil along with shorter baths. It seems to help. Also, we make sure to dry her face completely after we wipe her down after meals.