Candy uses the term to mean, variously, "Eh?", "Okay.", "Whatever.", "Couldn't care less.", "And...?"
Do not confuse with Awwww!
Cute is a Muttly demonic slang term meaning "well-designed, elegant, suited to purpose". Sexy, elegant and alive are progessively more intensive variants. It takes a lot to impress a demon enough to use the word "alive" in this sense.
Cuteness can cause problems.