This is the single most important step in the entire routine, here's why. Bathwater hydrates the skin, but as it evaporates, it pulls moisture out and leaves the skin drier than before unless you trap it.
As soon as the bath is over, gently pat your baby's skin with a soft towel. Don't rub. Leave the skin slightly damp.
Then, within about three minutes, apply a thick fragrance-free cream or ointment all over. This is the "seal" in soak and seal. It locks the water into the skin instead of letting it evaporate.
Use thick creams or ointments, look for petroleum jelly, ceramides, or dimethicone high on the ingredient list. Avoid lotions. They're too thin to seal effectively.
If your doctor has prescribed a steroid cream, apply it to the affected patches first, then layer the moisturizer over everything else.
Continue moisturizing at least twice a day, even on days you skip the bath.