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I moved this to Relationships & Dating because I feel as if it would be best suited there.

Just because the two of you are friends doesn't mean that you can't have a good relationship with each other. You two can still have an awesome relationship, but just be prepared for any risks that may be involved with be breaking up, such as it affecting the friendship. But, even if you do break up, the two of you can still remain friends. If you decide to pursue a relationship, this should be something you discuss so you can be on the same page.

But, sometimes friends do cuddle. I have a friend who I cuddle with sometimes, but we have a completely platonic friendship, and aren't planning on entering a relationship any time soon.