The Urban Dictionary says:
.....…Cwtch, which has long been a familiar word in the Welsh language, was given two definitions:
noun (Welsh) 1. a cupboard or cubbyhole. 2. a cuddle or hug.’
BTW In case you're struggling with how to pronounce the word - it rhymes with butch, but really is anything but. A cwtch is a hearftfelt hug and we're all in need of one of those from time to time.