This article provides a list of home remedies for baby acne: http://www.homeremediesorg.com/home-remedies/home-remedies-baby-acne-natural-get-rid-treatment/ Examples listed are Coconut oil (a small amount of extra virgin, organic type seemed to be effective), Corn starch with water, Breast Milk. While these are not herbs, they are natural cures that you can consider as well.
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Breast milk works wonders! Also I've read that if you are a breastfeeding mother, drinking dandelion tea will help a lot with baby acne.
Yes, bathe baby is Jing Ying Hua - buy from the Tcm hall about $4. It helps with jaundice as well.
thanks