Hi Sameet,
What a wonderful case,
Thanks so much for posting it.
You could put it in the lumps and bumps thread as well if you like,
You have summed it up perfectly and the appearance in your case is typical.
Sometimes these will occur in the sub-cutaneous space area where they are not adjacent to the bone.
In these cases they look much like an epidermoid or sebaceous cyst, however they don’t have a punctum.
Please keep posting your gems,
This one is wonderful,
Steve.