2yo w/1or2 pieces of yellow crust on eyelashes upon waking, appears redder/sometimes watery but not actively oozing or itchy. Infection or due to cold?

Neither. These symptoms are usually due to a tear drainage problem, what we call a nasolacrimal duct obstruction. Your child needs to see an ophthalmologist to determine treatment.
Possibly. Problems like these can only be correctly handled by your doctor in person. He/she needs to listen to you, perform an examination and possibly run labs or other tests. That's the only way he/she can find out what's going on and what to do about it.