I know that Huggies makes a liquid powder. I am not sure how it works...I have had some before (for adults) and it goes on like a liquid, but kind of evaporates and leaves the skin dry, like a powder would.
I was at Target yesterday and found a new Johnson and Johnson product called Soothing Naturals Soothe and Protect Balm. It comes in tiny deodorant-looking tube, smells yummy. Here is what is says about it...
Softens dry cheeks and patches
Formulated with a unique blend of pure Vitamin E, olive leaf extract and skin essential minerals
Moisturizes baby's cheeks and lips to help protect against dryness
Good for dry patches anywhere on baby's body
Clinically proven mild and allergy tested, non-comedogenic
Thoroughly tested by dermatologists