Cradle cap - flakey scalp

The first thing to say about cradle cap is that it is very common. If your baby's scalp has flaky, dry skin that looks like dandruff, or even thick, oily, yellowish or brown scaling or crusting patches, it's most likely cradle cap.

Cradle cap is harmless it shows up in the first few months of life, and it usually clears up on its own in about six to 12 months, although it is not uncommon of some babies to have it for several years.

Causes
The cause of cradle cap seems to be unknown but debated. What is known for sure is that it is not caused by poor hygiene or allergies and it's not contagious. It probably doesn't bother your baby at all, although if it gets severe it might itch. In most cases it is the mothers who are bothered by the cradle cap the babies as with most things are completely oblivious.

Treatment
Do nothing ! You don't really need to do anything, but if it bothers you, try shampooing more frequently and gently brushing your baby's scalp with a soft brush or a terrycloth towel. Some parents find that rubbing olive oil into the scalp and leaving it for 15 Min's before washing it out can help to lessen the problem.
If you are in any way worried about it or it spreads beyond the scalp speak to your G.P. about it.