Are you injecting, or are you using androgel?
It sounds like a mild allergic reaction, perhaps switching T forms may fix it. Mention it to your endo.
Keep applying a mild healing salve of some sort to the area for now and I'd suggest applying baby oil or olive oil or something similar to most/all of your skin after each shower. Skin oils itself, that's why it's "soft". If it's dry then it's no longer oiling itself properly.