DD had really bad cradle cap when she was about 10 weeks old. I went and brought Aveeno baby, the baby moisture Lotion and gave that a go. It said it is helps heal and protect delicate skin, nothing about cradle cap.
I stopped using bath stuff on her head in the bad, dried it really well after washing, put Aveeno on and used a soft brush to comb her hair (which we do twice a day anyway) and with like 3 days, her head cleared up to the point you didn't even know she had cradle cap before!!
I even use it for her nappy rash now. I put it on when she is a little red or whatever and it clears it right up. We now use the bath stuff too.
I swear by the stuff! Highly recommend it smile