Cyst: This may be a small inclusion cyst and the watery material is serum. It's a bad idea to pop any skin lesion. If it was pus filled, applying warm soaks is appropriate. Surrounding redness indicates inflammation of the skin, but spreading redness means infection requiring medical attention. In the meantime apply an antibacterial ointment like bacitracin after warm soaks and patting dry.
Answered 9/4/2018
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