The term cotton is reflective of an absorbant material. Much like the term cottonmouth (dry mouth / the mouth which is dry), pussycotton refers to quite literally dry pussy. Which in turn is reflective of pleasure, or in this case a lack there of.
N. Noun. To escape the current situation, task or subject by inadvertantly partaking in abscent minded activities or conversation as to seem too busy to be bothered with the required task or situation. See procrastination.
You boys quit pussy foot'n 'round and git back to werk before I put my foot up yer ass!