We still deal w this, lanolin works wonders, I apply at night after her bath, usually cleared up by am or eucerin cream not lotion (has alcohol in and could further the process and burn). Also I did lanolin as a bebe because is some ended up in her mouth no biggie.
Btw our DD is 5 she's dealing w it now and she told me tonight that her face actually hurts, poor kid.
Be kind whenever possible. It is always possible.