Skin health characterized by a system of water and lipids in Stratum Corneum provide protection from harmful external elements and prevent trans-epidermal water loss. Skin hydration (moisture) and sebum (skin surface lipids) are considered to be important factors in skin health; a right balance between these components is an indication of skin health and plays a central role in protecting and preserving skin integrity. In this manuscript we present an infrared spectroscopic method for simultaneous and quantitative measurement of skin hydration and sebum levels utilizing differential detection with three wavelengths 1720, 1750, and 1770 nm, corresponding to the lipid vibrational bands that lie "in between" the prominent water absorption bands. The skin sebum and hydration values on the forehead under natural conditions and its variations to external stimuli were measured using our experimental set-up. The experimental results obtained with the optical set-up show good correlation with the results obtained with the commercially available instruments Corneometer and Sebumeter.