How to treat dry cracked skin on heel, without softening skin too much?

Creams will help: Dry, thickened, cracked heel skin may or may not have some athlete's foot fungus in it. One can try lotrimin (clotrimazole) af cream 2-3 times a day for a couple of weeks, and then switch to a non-medicated cream such as cerave, cetaphil, or eucerin. If not much improvement, a primary care doctor or a dermatologist can evaluate and offer more recommendations.

Dry skin: You can try removing the dry cracked area carefully. There are creams that will help with this - urea in them. Soaking can dry the skin as the oils leave the skin especially when soaked in epson salts.