Nystatin barely works at all and is more hassle than it's worth. Also, stop using the lanolin as it aids in the growth of yeast.
Here is what I posted in another post. I suggest gentian violet (along with some of the preventatives like vinegar in the wash and aci/babydophillus). The gentian violet will get rid of the thrush and, in addition, aid in healing the cut. In order to get your milk supply back up I suggest drinking a LOT of water, eating comfort foods (but little or no sugar because that'll just encourage the yeast) and taking fenugreek or, if you can find it, a tea, tincture or capsule that is made specifically for increasing one's milk supply (they usually contain fenugreek along with some other galactalogues). And nurse, nurse, nurse!
Whether or not both baby and mother have signs, if one has thrush then BOTH need to be treated at the same time otherwise it will continue to be passed back and forth. Limiting/cutting out sugar is extremely important as well since yeast thrives on sugar.
Ways to prevent thrush and treat mild cases:
Vinegar! Since thrush is usually accompanied by vaginal yeast infections and candida (yeast) diaper rashes, wash all towels, bras, nursing pads, diapers and anything that comes in contact with breastmilk and yeast-prone places in the hottest water possible with a cup of white vinegar in the rinse. This is a very simple preventative and works great. Also, when the thrush is active, make a mixture of one cup water to one tablespoon white vinegar and use it to rinse/wipe off breasts after each feeding and allow to air dry and then replace with fresh nursing pads (change solution 1-2 times a day). This solution is great for all toys that cannot be boiled (pacifiers, nipples, chew toys, etc. need to be boiled if possible - this is also great to dip pacifiers in after each use in between boiling).
Grapefruit seed extract. This stuff is great and works on sooo many things (www.pureliquidgold.com)
. It is best in liquid form but capsules are okay if you cannot handle the liquid. It is EXTREMELY bitter. It is best taken internally diluted in water and, for an infant, dilute one drop in some water (dip finger in to taste to make sure it's not too bitter/strong) and put all around in baby's mouth either with finger or q-tip. (Can be found at pretty much any natural/health food stores.)
Acidophillus. Acidophillus is a great preventative and can be taken daily without much hassle. Eating lots of yogurt (low or no sugar) is good but supplemental acidophillus for mother and babydophillus for baby work just fine. Just take according to the directions on the bottle. (Can be found at pretty much any natural/health food stores.)
Treating active thrush (not preventative):
Gentian violet. If it is really bad (particularly if mother is dreading nursing because of the pain) then gentian violet works well. Just paint it on baby's mouth (roof, sides, tongue) and paint it on your nipples, areola and preferably the rest of your breast. Do this two-three times a day for two days and then continue with vinegar/acidophillus/etc. and it should be fine. The gentian knocks it out. However, avoid using it unless it's really bothering you because too much gentian can be bad for baby because of the alcohol content (but only when used in excess so a little is more than okay). This stuff is also great to put on baby's butt for any rashes, particularly if they're caused by candida (yeast) which often happens when you or baby has thrush because it comes out in the poop. Keep in mind that gentian violet is very messy and stains like crazy so be sure you and baby wear clothes that you don't mind getting purple.
(Can be found at pretty much any drug/pharmacy store.)
Borax. This is the most commonly suggested (and effective) remedy for both mother and baby. However, I will keep searching to find some other suggestions and when to use each one.
Keep in mind there are various things that can cancel out homeopathy such as coffee so be aware of that and when you purchase your homeopathic remedy ask the salesperson what all you need to avoid.
I've dealt with thrush many times and these are the things that work the best for me. I haven't tried any of the homeopathic remedies yet, but I plan whenever I finally remember to get it when I'm at the store. lol Also, yeast organisms hate sunlight so if you can sunbathe your breasts, that would be a great idea.