Sounds like it could be molluscum contagiosum, especially the "waxy" description. However, MC usually is better described as being "on" the skin, not "embedded", and generally there are several lesions. There often is a dimple in the center. Alternatively, it could be a pimple, infected sebaceous cyst, or ingrown hair. Stop the hydrocortisone (if it's an infection, the steroid can make it worse) and see a health care provider if it persists.
You can search the forum for "molluscum" or "molluscum contagiosum" to see other threads with lots of information about it.
Good luck-- HHH, MD
HHH, MD