Epidermoid cyst: You are describing an epidermoid cyst( erroneously called sebaceous cyst in America). The cyst contains keratin which is what hair is composed of. It may develop from a obstructed hair follicle, but may occur in hairless areas also. The cyst wall consists of epidermis like cells which secrete keratin, not sebum. It can just be lanced and drained but may reoccur if the wall is left in place.
Answered 2/4/2015
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