I doubt if anything you have done has made it worse - so don't fret.
Do you think it could be this?
"Childhood seborrhoeic eczema is usually seen in infants under the age of one, seborrhoeic eczema can appear quite suddenly between two and six months after birth. Often the nappy area is affected first, however, it tends to spread fairly rapidly so that the scalp, face, neck, armpits and sometimes even the trunk are soon affected ? this may seem rather alarming but don?t worry, it will soon improve!
In the nappy area, the skin looks red, inflamed and flaky ? the surface may also feel bumpy due to tiny blisters. The skin scales in this area are small and white, and tend to rub off easily making the skin look shiny. Sometimes it spreads up the body and down the legs, when small round or oval patches are seen, which later join together to form larger red areas.
On the scalp, the scales are larger, greasy and yellowish ? they tend to stick to the head making it look crusted. The forehead, temples, eyebrows, back of neck, behind the ears and folds at the sides of the nose are often also affected.
Childhood seborrhoeic eczema is not usually itchy, sore or uncomfortable, so your baby should feed, play and sleep as usual, and hopefully be undisturbed by it"
and this is the suggested treatment...
"Unfortunately, there is no cure for infantile seborrhoeic eczema, but it usually clears up on its own within a few months. However, you may want to try some of the following suggestions to help maintain the skin:
Body:
Emollient bath oil can be added to the baby?s bath to help loosen scales, moisturise the skin and help prevent further skin flaking and infection. Some emollient bath oils are available from your GP; others can be bought over the counter with help from your pharmacist. But take care, emollient bath oils make the bath and baby very slippery!
An emollient soap substitute and an emollient cream can be helpful to further moisturise and soothe the skin.
An antifungal cream can help keep the seborrhoeic eczema under control and if the skin looks sore your doctor may also prescribe a mild topical steroid ointment or cream such as hydrocortisone to reduce inflammation. However, treatment depends on which part of the body is affected.
Scalp:
If it is thickly scaled warmed olive oil massaged into the scalp and left for one hour will loosen the scales. Gentle washing with a mild shampoo will then help to remove the scales.
Nappy area:
Keep this area clean and dry to prevent infection. Check nappies frequently, perhaps every hour, and change them as soon as they become wet or soiled. At nappy change, apply an emollient to help protect the skin. The nappy area can be cleaned using a soap substitute such as aqueous cream with warm water. If possible avoid plastic pants as these can make seborrhoeic eczema in the nappy area worse. It helps to remove your baby?s nappy for periods of time whenever you can to enable air to get to the affected area."
The info is from the National Eczema Society
www.eczema.org/seborrhoeic_eczema.html