My son has this too! it drives me crazy, but doesn't seem to bother him much. He is 2 1/2. The best cream ever is the Calendula Cream from California Baby. It is sometimes hard to find. I get mine online at www.dermstore.com
Anything from California Baby is great!! Their products are awesome...go to the dermstore website and read their reviews on the different creams. But, I like the Calendula cream.