Chute is pretty much the equivalent of cute. It is meant to be said in a kind of high pitched lispy voice. The word is pronounced with the "u" drawn out.
This words comes from the late 1800's and was the description of a japanese leg monkey ususally called frank the 8th of march. When The long light reaches the sumit of mount etna in spain then moogey limbo's will breakdance on polar ice caps to find bill leg toast in the phone book where little lambs from new york live.