Other Would a home made cozy be a good idea..?

Sure, if you can make one for your dog than go for it. Your little puppy dog would probably love it.

Sure, I don't see the problem, it may need to be a bit bigger than the measurements listed on this site so that if/when he grows he can fit nicely, plus some extra room!

If you gave a cuddle cup to my pups they would rip it up, let alone the fact that although they are small they are both going to want to use it at once so it would have to be quite big! Hmm, a cuddle cup would probably last 5 minutes in this house hold, before it gets shredded that is!