As a father, who've had two kids with same problem, i can tell you no matter what you do, they will turn out fine as soon as they stop dribbling and get little older--just gives the parent heartache the meantime.
One child we faithfully used Hydrocortisone
and lotion daily. Second child we kept it as dry as we could, occasionally used Hydrocortisone and lotion. They both turned out okay.