Well, maybe it isn't yeast.  
When I first started at my current job, I had a bunch of expired lanolin in my desk.  (It does have an expiration date) I desided to use it on my cuticles. It was winter and my skin was very dry.  Anyway, within a week the skin on my hands began peeling and getting very red and shiny.  I thought it was the new brand of latex gloves that I wear when I clean up the office.  To make a long story short, I realized that I was having a reaction to the lanolin.  I know it is "hypoallergenic" but it must be possible for some people to be allergic to anything.  (I also get a slight rash when I knit with wool, but nothing like this)  
So maybe request that the mom stop using everything on her nipples for a couple of weeks.  She should see some improvement pretty quickly.
Barbara Leshin-Zucker, IBCLC
Breastfeeding Coordinator
Morrisania WIC, Bronx, NY

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