I had the same thing and went to a health service center and they told me it was a virus that children get on their arms and legs and easily transferable to adults (mostly on genitals). They said that you will eventually build up immunity to it and the doughnut shaped zits will go away. You can get rid of them if you squeeze out the white hard stuff under the skin and clean it thoroughly or get them frozen of by doctor. I got it from working with kids at a day camp for over 6 years.
Hi,
Where are these papules located?
Pearly penile papules are usually found along the rim of the foreskin or the base of the glans penis."Pearly penile papules typically are asymptomatic and persist throughout life, although lesions gradually may become less noticeable with advancing age."
Source:http://www.emedicine.com/derm/topic313.htm
This could be due to acne/pimples/ or infection of the hair follicles called folliculitis or some bacterial infection/ fungal infection or some skin nodules etc.
Nothing can be said with surety without having a look at the lesions.
It would be best to reconsult your doctor about your symptoms if they do not resolve and get a proper clinical examination.
Keep the area clean and wear clothes washed in a few drops of chlorhexidine preferably and dried in the sun.
You could take oral antihistamine or antiallergic medications for the itching.
Let us know about what your doctor advises.
Regards.