Sounds the same as Galens cradle cap. Because of his hair we had a tough time keeping it at bay.
I just pick Galen's scabs off gently. Fine to do, the only thing that happens is a bit of hair comes away also (the hair he was born with, not new growth). No bleeding or anything. I keep using the Dentinox also. Its just dead skin and won't come away without some persuasding. Picking at it is a bit ming but needs to be done.