A composition and a method of producing a composition which simulates hydration, cleansing and other properties of native vernix. The composition contains hydrated synthetic cells in a lipid matrix to provide rheological properties which are substantially similar to those of native vernix, and may also contain proteins. In one embodiment, the composition contains cubosomes/water with up to 30% protein and about 5% lipid to about 30% lipid. The composition may be used to cleanse newborn skin, compromised skin surfaces, as well as normal skin, to provide hydration/barrier function, and other applications.