I agree that it could be a fungal infection such as favus. Antifungal creams, such as Lotrimin (clotrimazole is the generic) and Monistat 7 (miconazole is the generic) are used to treat it. Generics can be found cheaper, and clotrimazole is also available in some doller stores. Some have also reported using coconut oil, but not sure that it works.