I think the main thing you need to realize is that you need to separate the two things from each other. The emotion of love and the physical act of cuddling are not mutually inclusive. Humans need touch and sharing touch is a natural thing. Whether or not he has feelings towards you is a question you need to discuss. Some people are not ready to admit feelings that they are not comfortable with.
I slept with a straight man for years who used to wrap me up in his arms and cuddle me like I was his teddy bear. We were best friends and I love him dearly. He later got married and has 3 kids and I am sure he cuddles his wife each night too. Affection and caring does not necessarily equate to being in love with someone. Right now, I'd accept the cuddling as a sign of affection. If it grows into something more, great. If not, enjoy it.
The sad part about the world right now is that society has ostracized men to such an extent that they are afraid to show any other man any affection without being accused of being gay. I find it sad that the world has labeled any touch between men as gay. I would be more apt to congratulate you two for showing some abiding affection but caution you not to read into it too much. Communicate and talk about your feelings.. and let things grow from there. If all he has to offer is friendship, you will need to decide if you can accept that and be happy with it.