Hello,
It looks like irritated hair follicles due to folliculitis skin. Apply warm compresses, Neosporin ointment and calamine lotion and avoid messing with it. You can take anti-inflammatory pain killers like ibuprofen or acetaminophen. If the lump persists then it will be best to get it evaluated from a dermatologist.
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.
She needs to clear this up. If topical treatments do not work, she can take oral Diflucan. Whether topical or oral, she needs to complete the treatment. Often this problem starts because a woman is put on an antibiotic and it messes up the balance of her flora. Having sex while the balance is out of whack is quite uncomfortable, so let her get rid of this. She can take an oral supplement like AzoYeast if she finds she can't keep in balance. Eating yogurt with active cultures is good too.
At the same time, use the topical treatment yourself for the full time it says on the tube. Do not put it on while skin is still wet; let it dry thoroughly first. Always, always shower before intercourse and wash your hands every time you use the bathroom. That way you won't cause her to have bacterial infections that force her to take antibiotics. That will help her avoid getting the yeast infection.
Many women have monilial yeasts as the part of their normal flora (Not a disease but the yeasts are present) and the partner can develop a balanoposthits(Infection) due to hygene problems.Do check in with herpes also as an alternative diagnosis.