Go to the vet, that sounds like he might be having an allergic reaction!
Take him to the vet obviously. They're not going to give out advice if the don't see him.
First of all, what has changed in your dogs life since the redness has started? Diet, soaps (yours and his/hers). Try to identify those possibilities and stop using it. But next I have to tell you that I'm not a dr. but I have used children's Benadryl for my dogs. They do have a new allergy medication now days for dogs. I hope this helps, as I understand your and your baby's pain.
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