the Fatwa Department Research Committee - chaired by Sheikh `Abd al-Wahhâb al-Turayrî
Yes, it is permissible to rub the head of the newborn baby with saffron. This is to be carried out upon shaving the baby’s head on the day of his `aqîqah.
`Aishah said: “In the days of ignorance, when people would slaughter an animal on behalf of the new baby, they used to immerse a piece of cotton in the animal’s blood and rub the baby’s head with it after shaving it.”
The Prophet (peace be upon him) instructed: “Use some mixture of perfume instead of blood.” [Sahîh Ibn Hibbân (12/122, hadîth No. 5308)]
In another hadîth, from `Abd Allah b. Buraydah from his father: “When Allah brought Islam (to the world) we used to slaughter an animal, shave the baby’s head, and rub it with saffron.” [Sunan Abî Dâwûd (2843) and Sunan al-Bayhaqî (9/302) and declared “good and authentic” by al-Albânî]
And Allah knows best.
Source: Islam Today