Think of one small scene: two arms closing around something soft and warm, and neither side wanting to let go. Cuddly is the adjective for anything standing in that picture. Stand at one end and you get the thing being held — the puppy you want to lift, the bear built so a child can hold it all night. Stand at the other end and you get the one doing the holding — the who climbs on your lap, the cat who walks onto your book. Same hug, different side of it.
From the word’s history
Cuddly is cuddle plus -y, the ending that makes an adjective out of a thing or an action. So the word means, quite literally, having to do with cuddling — and English has let it lean toward whichever side of the cuddle the sentence is about.
cuddly 是 cuddle 加上 -y，而 -y 的作用就是把一個東西或動作變成形容詞。所以它字面上只說了「跟抱有關」。英文後來讓它兩邊都站得住：句子在講哪一頭，它就指哪一頭。
Wiktionary, "cuddly"
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