Final answer:
The cream cheese-like substance is called vernix caseosa, a waxy coating that protects the fetus's skin during development.
Step-by-step explanation:
The cream cheese-like substance secreted by the baby's sebaceous glands that protects the skin from the amniotic fluid is known as vernix caseosa. During fetal development, particularly between weeks 16-20, vernix caseosa forms as a waxy, protective coating that safeguards and moisturizes the fetus's skin and may aid in lubrication during childbirth. Unlike vernix caseosa, meconium is a substance that can interfere with the antibiotic properties of the amniotic fluid and make the newborn more vulnerable to infections, while lanugo is a fine, colorless hair covering the fetus but is usually shed close to birth. Amniotic fluid is the liquid that surrounds and protects the growing fetus inside the amniotic sac.