could be normal.
sound slike my
Dd's finger
bactroban isnt very strong and really only works and fighting infection.
i have never seen it cause skin peeling.
usually the skin peeling is because it is dead form being stretched and infected and the new skin layer underneath will look read as it hasnt been conditions to the air and sunlight yet.
if there is no further odour or puss from the site it should be ok.
if u are concerned take her to the chemist.
if the wound has cleared up and is only dry red skin try some vitamin e cream this will help moisturise the area.