Well its been awhile since I updated.
Took dd off dairy for 2 weeks and noticed that the rash had improved, but did not go away. Noticed that a new white ring was starting that looked like a yeast infection.
Last week took dd to the DR and the DR said that it was a yeast infection and gave me some cream. Since the red ring was still present, asked DR if she could have an intolerance or allergy to a food. She asked if there was diarrhea or stomach upset, I said no, and she said that this is just a yeast infection.
I have been using the cream for about 1 week (combination of anti-fungal, diaper cream) and the white ring is gone, but the big red circle is still there and has shown no signs of improvement at all.
DR if off still Jan 2 so I am thinking that I take her off dairy till then and see if there is any improvement or keeping things the way they are.