My wife is Mexican. The endearing terms that she, and her family uses, are a bit shocking to an American.
These are all terms of endearment...
"Gorda" - This roughly means "fatso". My wife frequently uses this as a term of endearment for sisters, nephews and neices. (Just imagine how your family would react to this
)
This term of endearment is used as a descriptive name. If you are not overweight, the term "flaca" (skinny person) is used.
"Cabron" - This means roughly "Bastard". In the right context it is quite vulgar and stronger than "bastard". But it is also used as a term of endearment.
My wife will ask my 5-year old nice "Who is my cabroncita?" (literally, "little bastard girl"), and she will reply with glee "I am, I am tia!".
"Peloncito" - Literally "baldy". This is a nickname that has stuck for me. I am acutally used to it (in spanish that is).
There are a lot of "cute" nicknames that describe an aspect of the person. There isn't the same sort of hangups Americans have about being overweight or bald. I guess they feel everyone knows it. If everyone accepts and likes
peloncito as he is, I don't mind that so much. Maybe there is a lesson here for Americans.