These are two questions that come up frequently and the answer is different for everyone.
People often do not apply enough cream because they do not like a greasy feel. The best answer is to apply a generous amount if the skin is dry. within a few seconds, apply a little more. You can’t really use too much (within reason) so more is better.
We can use the example of a sunscreen application. Here, we know that few people actually apply enough. In order to get the SPF indicated on the bottle, the average application should be 1 ounce. This may appear to be a lot (and it is) but this is the amount required to get the indicated SPF. With this quantity it is best to apply and then let the product dry for a minute or so before going outside. The same applies for an emollient cream, more is better or as much as you can tolerate.
If you are dealing with dry areas rather than the whole body, make sure to apply to areas surrounding the dry patch not just the dry spot.