Peeling skin—A newborn baby had just emerged from the womb where he was cramped in a small space and covered in amniotic fluid.As a result,he may not look picture perfect right away and may have bruises,blotchy skin and a cone-shaped head.These characteristics are normal for newborn baby, as is peeling skin.Many parents may fear that their baby's peeling skin is the result of dryness or irritation, but it's a normal result of birth.