If your baby is circumcised, the tip, or glans, of the penis is initially red and may have a thin yellow crust in spots. This is normal. The circumcision usually heals in about 10 days. Apply plenty of lubricating ointment to the penis during diaper changes for about one week. This will speed healing and prevent the circumcised area from sticking to the diaper.
White matter under the foreskin
On the uncircumcised penis (and in some circumcised ones, too), a white waxy material called smegma can collect between the foreskin and the head of the penis. This is normal and you do not need to remove it. It is also not necessary to pull back the foreskin.