Is the dry skin possibly a form of psoriasis? It can cause dry, flaky areas that can peel and crack when left untreated. You did not mention what ointment your doctor suggested, but I am guessing it is a hydrocortisone cream. When I began having frequent episodes of psoriasis around my ears my doctor prescribed Vectical, a prescription form of vitamin D. He said it would be gentler and safer to use on the face. It is not available in a generic and is pricey. However it helps me when used on a daily basis or at the first sign of recurrence. Check with your doctor as this may be a possible solution for you. Skin on the face is more delicate than other areas of the body and there can be permanent damage if the wrong product is used, especially hydrocortisone creams.