wrong it is not lichen nitidus, its looks more like hives, or some form of dermatitis. the cream has to be powerful to affect skin. i have the same issue, but is also over my body. look for possible soaps, detergent(laundry), creams, sprays, stuff you put on your skin alot. something you eat.
i also get itchy and dry skin. do you get stinging, and a dry area as well?