Topically applied capsaicin cream is used for pain close to the surface of the skin. Such conditions include: neuralgia, osteoarthritis, and rheumatoid arthritis. This treatment is solely used as a pain reliever; it will not cure any of these conditions. Neuralgia is a pain from the nerves near the surface of your skin. This pain may occur after an infection of shingles. It may also occur if you have diabetic neuropathy. The use of topical capsaicin cream for pain relief near the surface of the skin in the hands, feet, knees,