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I suggest that this discharge be microscopically evaluated so that we could have a clue to what organism may be causing this. Also a culture may be done to guide treatment later on. By your description, this sounds like a fungal infection. I suggest that you apply topical antifungal cream on the area. Just do so thinly and observe if the skin condition improves in a few days. If there is no improvement, the culture done with the discharge will help. It is best to obtain samples for culture prior to initiating the medications.