You've already been reassured that this normal and nothing to worry about. It's true!
This happened to my older son. When he was about a year old he started getting a lump on one side of his foreskin near the base of the glans. This lump grew gradually larger until his penis looked really lop-sided. Then when he was three the lump discharged from the tip of the penis as about 1/4 tsp of white dryish-pasty odorless material. And that was the end of the story.
As the foreskin gradually separates, the sloughed cells that connected it to the glans can build up in pockets under the foreskin, before separation has occurred enough to create an opening to the outlet. In some boys this can accumulate to a noticeable degree, in others a route to the outlet is available early, and no major build up occurs. These cells work their way to the foreskin opening all by themselves. No squeezing, forced retracting, or surgery necessary! The AAP's handout on care of the intact penis says exactly this. I am continually amazed at the ignorance of pediatric urologists about normal intact penises!
BTW, these cells (collectively called "baby smegma") can get washed out periodically by urine flushing the space under the foreskin. This can cause the urine to look milky or cloudy in appearance on occasion. As long as this is a transitory phenomenon, and no other symptoms are present, this is not of concern either.
A PP mentioned her experience of redness, swelling, and ballooning associated with a lump of this kind, but this did not happen with my son.