Hello,
It looks like an insect or an arthropod bite. You can take some antihistaminic like benadryl or Claritin. Although the bite may be itchy, avoid scratching it because you may damage the skin, and allow bacteria to get in, leading to infection. Continue using the steroids that your doctor has prescribed.
However get an examination done from a dermatologist to rule out any tick bites which may later progress to Lyme’s disease.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your doctor. I sincerely hope that helps. Take care and please do keep me posted on how you are doing.
wow that does not look to comfy! it could be an allergic reaction to something that bit you like a spider or some other ugly little bug!. im assuming you have been bitten by mosquitoes before, my nephews are allergic to their bites and they will swell up like this! i remember once one of them had been bitten by a mosquito and it swelled up and started pussing up and it was quite nasty. i would suggest seeing a doctor right away if it is not showing any signs of recovery w/in a couple more days! best of luck ! keep me posted!
Also, although the picture looks like it's red skin patch, but actually the red area is not raised, it just has a lot of red dots on it.