Hello,
I want to second the other mom who mentioned removing dairy from your baby's diet. My son has food intolerances and when he was first diagnosed I would not have equated food to all of his "medical problems". He had constant ear infections, sensitive skin, dry patches in his elbows and knees, etc. By removing the "bad" foods from his diet these symptoms cleared up over a period of months. But, I saw an improvement within just a few days.
If you decide to remove dairy from your baby's diet, keep it out for at least 4 -5 days and see if there are any changes. If you are still breast feeding, then that means you will have to eliminate dairy from your diet too including yogurt, cottage cheese, and other foods that have dairy as an ingredient.
If removing dairy from his / your diet does not affect his skin condition, then you might want to consider other foods and remove them in the same way one at a time. Many pediatricians do not take classes in food allergies / sensitivities so when they see dry skin and red spots they immediately look to medical ways to fix the symptoms. They don't always look to the cause of the problem and many times don't think about chemicals in the baby's environment or foods that might be the cause of the symptoms.
If you have trouble determining the specific food or chemical your little guy may be reacting to, then I would suggest you visit a pediatric allergist to help you figure out what he may be sensitive to. At this age it can be a challenge, but the doctor and office staff can give you more specific instructions and ask questions to help you determine the culprit(s).
Good luck and I hope your little guy starts to feel better soon.
C. J.