Hi J.,
I am in the same boat. My 7 week old daughter has had it since 4 weeks. I am a "research buff" and have looked up everything I can on the subject because it drives me nuts and I just want to scrub it all off!!
It seems to be a reaction to our hormones still in their system. It should disappear on it's own with a month to two months. I have already started to see it diminishing and hope that it will be completely gone in the next two weeks. It is NOT a food allergy or defect in the baby whatsoever. Food allergies normally show digestively before they show on the skin.
Here is the advice I have gathered and utilized:
1) Patience - you won't be able to get it to go away so stop trying. (and DON'T pick at it...it will scar!)
2) Bathing - to keep the oil/bacteria from forming keep your baby's skin clean. I do a bath every other night and wash down with a wet washcloth on the opposite nights. I saw a huge decrease in bumps when I started doing this. (no products are necessary, just water)
3) Lotions/Cream - don't use them! They can make it worse. I have found two dry spots on her cheeks that I use the Johnson's Soothing Naturals Stick Balm on. That helps alot with the dry flakey skin and cradle cap.
4) Body Temp - be aware that it is somewhat aggravated by heat. When my daughter falls asleep on one of us the cheek she lays on always appears much worse than the rest of her face. When she sleeps in her bouncy chair it almost goes away completely!
If all else fails you might try going to a fragrance free laundry detergent and softener. I did that anyway just to be on the safe side!
Like I said...I know it's ugly but it will not last forever and is not a sign of things to come in puberty! My 10 year old and 2 yr old had it and they both now have BEAUTIFUL skin!
Good luck and I hope this helps!