Both my sons have had terrible cradle cap that creeped down into eczema on face and then body. I haven't found any real cures, but here's a list of things I do to minimize.
Use all fragrance-free products (lotions, baby wash, detergent, even dryer sheets.)
Dress in cotton clothing.
Don't bathe him every day. I only bathe about 2 x per week. I wash face and diaper area daily.
Use grapeseed or almond oil or even olive oil on his head to loosen the cradle cap and a soft brush. I tried baby oil once, but the fragrance was too much and caused lots of rashy itching.
Keep head and face moisturized. Cetaphil, Cera Ve and Complex 15 are all great lotions that are fragrance and allergen free. Lanolin is sometimes a culprit to cause itching and allergic reaction...and most lotions contain it. Those three do not.
I use a cortisone cream when it is a terrible outbreak....but I try not to if I can keep it under control.
My 3-year-old has outgrown it...finally. My 4-month old has it worse than my older son, but I've been able to keep it under control.
GOOD LUCK! From one mom of a scaly baby to another!