1% hydrocortisone is too weak to thin the skin, even after prolonged use. I'm not sure exactly what your problem is, but I'm confident it's not from skin thinning (which is completely reversible, by the way, even when it happens).
It sounds to me as though you have pseudofollicultis ("razor bump.) The solution is to shave less. Perhaps your dermatologist can prescribe a medicated shaving cream, or maybe laser hair removal to thin your hair might help.
You need to ask a dermatologist about this in person. But there's no need to give up, as it's certainly able to be helped.
Take care.
Dr. Rockoff
if you have any doubts about this, just google for CORTISONE SIDE EFFECTS.
I have unwittingly used a range of them over many years, on my Doctor's and many specialists' strong advisement. The results are often temporary improvement in symptoms, followed by a relapse within weeks then requiring a growing dosage/amount of (ointment/drops/spray). In the longer term, the condition always continues to decline. I have no doubt that the intensity and variety of problems was increased by prolonged use of cortisones.
What is not clear, is what real alternatives there are to this insidious drug. There are many businesses out there peddling 'snake oil' a a wonder-drug for any disease you may have, so it's hard to wade through it all to find something that works.
For my part, over more than a year, I have found tea-tree, manuka, and lavender (oils/ointments/creams) to be equal to, if not more effective for the range of topical skin conditions than many dozens of products that were prescribed by doctors.
Dermatologists and other specialists are highly trained and skilled professionals and in my experience they are excellent at diagnosing illnesses. If you have any doubts, always get a second opinion (ideally not by referral from the first person).
However, like GP's specialists are as equally suseptible to the lure of pharmaceutical companies' kickbacks, incentives and the trillion$ propaganda machine. Pharmaceuticals have no interest in promoting natural products -- because they are not patentable.
Dr. Rockoff