Hi, I am quite empathetic to your daughter s condition. There can be multiple of possibilities of the recurrent rashes but most commonly it is due to Atopic dermatitis in children. It is a common problem in children of this age group. So do not worry about the same. Do not pinch, pop or squeeze the area. For itching part you can give her tablet loratadine one time. If at all it is recurring then can meet specifically a dermatologist for best possible diagnosis. Properly moisturization is the most important part in her treatment. Take care.