what beautiful baby you have;-)
i'm no expert, but i have an 18-month old baby who used to have rashes just like your baby. Here's some of the things that work for my son depending on types of rshes he's having.. you'll
1.i visited a chinese medicine shop, showed my baby to the 'sinseh' and he/she prescribed some dried roots, tree barks, leaves, etc-etc to boil, and bath my son with it. it worked..
2.went to see a paeditrician, which costed me RM120(USD1=RM3.279). she prescribed the candacort (apply on affected area for 3 days or until the redness gone) and the candazole (apply for 2 weeks,after candacort) creams which i later found out only cost below RM10 each at pharmacies.
3.if u use talc, try tapioca powder. they seem to work magic on rashes.
4.as i 80% breastfeed my son, i watch what i eat-try to avoid seafood (except certain fish).
keep her fingernails short all the time, cut them while she's asleep.
don't worry, your baby will be fine..she'll grow out of it.