It sounds to me like your daughter has a yeast infection. It is not uncommon for children this age to get them, especially if they have been treated with antibiotics. The rashes are the big give away. Just like a baby with thrush, an older child can get candida rashes on their genitals. Add to the rashes the constant touching, and it sounds like a yeast infection. Get her doctor to check her. Diflucan oral has been approved for pediatric use, so you wont have to worry about trying to get cream in places you would rather not go.
In the mean time, you can try miconazole cream (like the stuff that comes with a yeast infection kit) and just gently put it on the area like you would diaper cream. If that helps, the it is almost positive that her problem is a yeast infection.
Just so you dont feel alone in this, My 20 month old recently developed a yeast infection (or perhaps she has had it for a while and I just recently noticed it) and she is always touching herself and saying "owie!"
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Angel, et al
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Angel, et al
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