Yes, toy poodles like to cuddle. Toy poodles have an affectionate nature as a breed. They like to cuddle their owners, and may even want to lay down in your lap if allowed.
Toy poodles were bred for companionship, so they love to spend time snuggled together with the people in their household.
These dogs may show affection in other ways, too. Toy poodles might lean up against you, bring toys to you for playtime, or lick you when they get the chance.