If she has really sensitive skin or skin allergies to chemicals and soaps you may have to get chemical free soaps and lotions. Aveeno is good for dry skin but it still has chemicals in it. You may want to try using California baby soaps or berts bees. You will especially want to get a dish soap that is chemical free. They carry seventh generation at target and it works really well. My daughter has skin allergies and gets the same thing around her mouth and on her skin. If I am careful about soaps and detergents it gets much better. Good luck!