Made popular in Kevin Smith movies.By his his character Jay who he frequently act alongside as Silent Bob.They act as stoners and drug dealers.
The character Jay's familiar “snootchie bootchies” and “snoogans” sayings are based on things Jason Mewes (whom plays jay)used to say himself as a teenager.
According to Smith, the phrases were meant to convey something along the lines of “just kidding, don't kick my ass.”
Which is why in most of his offensive jokes he ends the sentence with "Snootchie Bootchies" !
Quotes from the 1994 kevin smith movie 'Mallrats'
Jay: Come to me, son of Jor-El. Kneel before Zod. Snootchie-bootchies.
T.S. Quint: Jesus, how much did you smoke?
Jay: All it took was a phat, chronic blunt. These guys were lightweights.
T.S. Quint: How much do I owe you?
Jay: My treat. As long as you promise that the next time you pop your old lady, you make her call you "Jay." Snootchie Bootchies.
T.S. Quint: Let's hope there is a next time.