A cheesy odour and hot spots are caused by a bacterial or fungal infection. It would be a good idea to stop bathing him and see your vet, there is a new treatment available for the problem which is not a steroid.
You are bathing him way too often. The smell you are describing is more than likely a yeast infection. The skin irritation could be from the yeast or from the frequent bathing.
You should bring your dog in to see the vet. Also, what type of food are you feeding him?
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