A term used by females to describe a guy that's hot ( or hot enough). It can be a compliment or merely a statement of adequacy. Similar to "I'd fuck him" but only implies an intent for second base. In fact, does not even have to necessarily apply to cock...but it usually does; the "nice girl"'s term for fuckability.
G1: I think Mike is so hot...
G2: Oh, yeah...I'd touch it.
G1: I think Peter is so cute and nice
G2: me, too, but I wouldn't touch it or anything.
G1: oh hells no.