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2.
A friend with benefits. Usually benefits of sexual nature.
Jenny and Joe are watching a movie together. Then all of a sudden...

Jenny: "Hey, what's that hard thing in my vagina!?"
Joe: "Oh, that's just my penis, chill bitch!"
Jenny: "Oh, ok. That's cool, cuz your my cuddy buddy!"
by g-file March 10, 2009
 
1.
A friend with sexual benefits.
She's my cuddy buddy.
by Tails September 30, 2003