Boil it (formula or breast). My sister's two children both had

they were born.  We did not know about the boiling thing, and my nephew basically just suffered through.  He got rashes all the time, and now he's 8, and he's still allegic to lots of things.  When my niece was born, we saw the same thing happening, so my parents started to read a lot of books about it, and saw this option.  We tried it - we did formula feeding, and did boil it, low heat.  After a few days, her rashes started to get better.  We did that every day for the entire year when she was on formula (even when we travel), and she was fine.  As result, she was actually able to eat a lot of foods that my nephew could not.  Although she does have some nut allergies nowadays, she can pretty much each everything, including shell fishes. 

Also, as she got older, and started to drink regular milk, we did boil that at the beginning.  But because by then her overall body is stronger, and she was able to tolerate other foods, we did eventually stop that.  She's now 4 years old, and she's basically allergy free.