What you are describing sounds like a case of cradle cap. This is an extremely common problem that affects small children most of the time. You do not need to get unduly alarmed because of this. It will clear up on its own after some time. However, if it starts growing out of control, you can adopt a few things to make the baby feel better. To start with, you can massage the baby’s scalp with coconut oil well and thoroughly. This will be a good way to get rid of the dryness that would typically be the cause of these blisters and the itching as well. You can apply a generous layer of oil about half an hour before the baby has a bath and wash it off with baby soap while bathing the baby. Please avoid using baby shampoos, even though there is nothing wrong with them. It is always better to use a body soap that is also meant for the scalp for the first year of the baby’s life. Shampoo has a tendency to be a little harsher in chemical composition than baby soap so you are better off avoiding it for a while.
Once you have bathed the baby, dry the scalp well and massage coconut oil into the scalp again. This time, use warm coconut oil. Use your finger tips for a gentle massage. Let the oil remain in the baby’s scalp. If possible, for a whole week, keep the baby’s scalp well soaked with the coconut oil. This will help to alleviate and remove any dryness for good. Even once it is gone, you should apply coconut oil to your baby’s scalp every week. In all probability, your child has a dry scalp and this kind of intense moisturization is needed. You should also try and change the baby’s bedding, at least the part where the head rests every day. If this is infectious to some degree, then it will become a recurring condition. Instead of changing the entire bedding, you can place soft hand towels under the baby’s head and keep changing those. This will make your task easier. Changing the towels will also be useful because coconut oil has a smell that everyone does not like. If you are averse to using coconut oil, you can use olive oil. In fact it is a good idea to massage the baby’s entire body with olive oil each night before bedtime.