Two of the most effective topical antifungals are Tea Tree Oil and Grapefruit Seed Extract. Grapefruit Seed Extract (not Grape Extract) is odorless, so your toddler may not object so much to its use. I've used grapefruit seed extract on a ringworm patch on my tummy and it was gone within a couple of days, so I know it works. I found I was allergic to Tea Tree Oil, but others have found it very helpful. A good source for Grapefruit Seed Extract is Nutribiotics, which you can find at your local health store. Over-the-counter antifungals like Tinactin or Lotrimin AF should also work.

The most important thing, though, is to keep applying the antifungal until you are sure it is gone (which may be several weeks after the area appears clear). Fungi can burrow deep and hide out until the "coast is clear", as is evidenced by some posters on this board who had trouble with ringworm reoccuring after it appeared that it had cleared.

I spent a great deal of time in the summer with my niece. She had confirmed ringworm. (which is fungal - not a parasite) It was a dry/scaly perfect circle on her shoulder blade. Anyway, she was treated with Lamisil cream. It didn't really clear it up though, it stayed the same - didn't get worse, didn't spread. But stayed the same for a long time.

Finally I took over the situation and bought her some pure tea tree oil. With in a couple of days of applying it thrice daily. It was looking smaller and not as "scaley".

So I would just suggest tea tree oil applied 3x per day for as long as needed.

Note: Grapefruit seed extract can irritate delicate skin - or even give a burning sensation. Depending on the strength/brand.