I have a couple 2 week old puppies with what looks like "cradle cap" over the top of their hips. It looks kind of scabby, but no open sores. Any experience/suggestions?

Yes, many times. Don't hurt them by trying to pull it off. It will work it's way off soon enough. Some say it is a sign they will have a great coat. I don't know if that is true or not, because I have had great coats on the pups that had it, and their littermates who did not. As the flakes start to pull away from the skin, you can gently comb them out. It will take a while, but they will all be gone soon.

If it is thick and scabby and tends to spread, Yes, it is a staph infection caused from getting scratched then getting their mom's milk in it without being cleaned.
You can get an antiseptic shampoo from your vet to treat this. We used one called Etiderm made by Virbac. but the area needs to be washed, I starting 3 times weekly with warm water and the shampoo, then combed out. You will notice after the 1st couple of days the area will start to get smaller and it takes about two weeks for it to disappear.

Gregg is correct. I have had this several times before. I have used a dilute betadyne solution (tea-color stregnth), worked into the skin for a few minutes, then rinsed off with warm water, 3 days in a row. Make sure the puppy does not get chilled, dry thoroughly. The betadyne might stain a little but will wear off soon.
Etiderm is great, but many vets would want to see the puppies to evaluate as it is considered by vets to be a prescription shampoo.
This staph skin infection is not super serious but does spread and can be uncomfortable as the scabs pull on the skin.

I had this this summer. I put bag balm on the spots the day before washing them in medicated shampoo from the Vet. The scabs wash off but it has to be repeated every week for two weeks.
I have wondered if antibacterial Dish Soap would work just as well.