She is absolutely beautiful!!!
It looks as though it could very well be a rash. My YOUNGER son has excema and it looks like that. The dermatologist said just to keep the areas moistened with mineral oil or something similar. I'm sure it's nothing to worry about. Though, I'm guessing that's easier said than done!!
Anywho, good luck, and congratulations on such a beautiful little girl!!!!!
Sincerely,