Sounds like she has perioral dermatitis to me. Treatment is tetracycline for around 8wks.
You have steroid rosacea. By using a strong steroid on your face, you have "hooked" your skin on steroids, so that it flares badly as soon as you stop. Still, no permanent damage has been done. You should see a dermatologist who will:
1. Tell you to stay away from all steroids on your face
2. Prescribe oral doxycycline or the equivalent and an external antibiotic.
In a few weeks you should be good as new.
Take care.
Dr. Rockoff
Oh!
I forgot to ask as well - could it be contagious as I have a baby that is constantly touching me on the face and nose etc.