What can i do about the flakey, red, dry, itchy, patches on my 7mo.old babys cheeks, its about the size of a nickel. ?

Moisturizer: Avoid harsh, perfumed soaps. Stop using dryer sheets if you do. The moisturize, moisturize, moisturize. Protect her face outdoors with a hat/keep in shade, or if can't, use sunscreen. Use a facial cleanser with a built in moisturizer as well. Ask your doctor for specific recommendations of products, as many "baby" soaps are actually quite drying and irritating.