My areola right by my nipples is inflamed and has clear discharge it started out almost like a dry flakey and now it's like this. i was breastfeeding.

See a doctor: Get this examined asap. Will not speculate on a diagnosis without seeing this but you should definitely be seen by a good clinician.

Nipple/areola rash: Nipples can get dry and irritated easily, especially in winter. This is particularly true when a woman is breastfeeding because saliva and stretching irritate the delicate nipple and areola skin further. If switching to a non-soap cleansing bar and moisturizing with petrolatum doesn't help, please see your dermatologist. There are other nipple/areola conditions that need to be ruled out.