A combination of something "funny" (hence: "lol") and something delicious and/or lucious.
The first tofurky became a blazing inferno after they thought the oil had to be boiling. I cracked up so hard the hors d'oeuvres that I was eating went everywhere. It was lol'cious.
Mila Cunas is hot AND she's funny. She's simply lol'cious.