Yeast

Your description definitely points to a yeast infection. Go to your local pharmacy and find the women's hygiene section. Look for creams which are directed toward vaginal yeast infections. They are not gender specific and will treat your problem. Squirt a bit inside the foreskin and knead it around to spread the medicine all over the inside.

Quit using soap to wash your penis. Use just plain water and pat it dry. Quit being concerned about smegma. Urine should not be a problem.