Insect bite on baby

ShrugBug

My 5 month old got a large hard lumpy like bump on her ankle that I believe is a mosquito bite. Mosquitoes are common where we live and I’ve been bitten as well. I hadn’t notice the bump until I was bathing my baby and felt the hard lump. I applied alcohol and hydrocortisone cream. That was yesterday today I did the same but notice the bump now has watery small bumps on top of it. Is this the healing process or is that not good? What to do