Cradle Cap is something I just can't stand to see on a sweet little baby head. This is something my midwife suggested with my first baby, and it has worked well on all of my children that have had it. Use a good  olive oil, rub gently into baby's scalp. Let sit for a little while, then use baby comb and gently massage the scalp with the teeth of the comb. I usually do this right before bath time so we don't get oil everywhere.  I only have to do this two or three times and we have a clear scalp.

Olive oil  also works to help clear up baby acne, it seems to get a little worse when you first put it on, but it is just opening the pores and clears up really fast after that.

Olive oil is a healing oil and a great substitute for chemical laden baby lotions.