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A blistering or burning skin rash can be shingles or herpes infection. This causes blister like red thing, white dots on the rash, pain and itch or burning can be diagnostic of shingles. This can be treated with antivirals, anti allergic and anti inflammatory tablets. Please discuss this with your doctor.
Hope this helps. Please let me know if there is any thing else and do keep me posted. Take care!
Have you seen an oncologist? Or have any doctors ran tests on it to see if it was cancerous? And I would recommend quitting smoking fast, just in case, this way it does not do anymore damage. I recently quit using the patch. It worked GREAT!