A term of affection for any girl who's insanely gorgeous, a.k.a. "babeworthy" but also cute enough that her unbelievable looks aren't intimidating. Babenuggets are usually young and petite girls, made to be carried across beaches for long periods of time and optimally designed for kissing.
"She's such a babenugget. I don't know how you fit that much sexy in such a small package."
"WHATTUP BABENUGGET. Come gimme a kiss. :)"