Anelise had something similar and it turned out to be eczema. We tried Sigmacort from the chemist on the Dr's recommendation (no need for prescription) and it helped a little. We took her off cows milk and put her on soy and the eczema has all cleared up without us having to use the cream anymore. Anelise was also getting really bad nappy rash at the time.

Are you able to go to the Dr for a 2nd opinion? I'm glad to hear it isn't anything really nasty. I hope it is just one of those things that clears up by itself in no time