naked cousin = cousin you are close enough you've been naked together. ( skinny dipping, changing clothes etc. )
naked cousin = a cousin so attractive you'd like to see him/her naked.
I've hung out with him all my life. He's even a Naked Cousin.
He got to be my Naked Cousin. That summer we went camping at the lake.
Man, I wish she was my Naked Cousin. She is so hot.