This signal, like all the communication in dance, ought to be subtle. Your frame should be firm enough that the woman can sense small shifts in the man's posture. From the Open Position, man raises woman's right hand and moves it to his right. Woman will turn to her left as the man brings her right hand up around her head. She won't be able to go all the way around because her left hand is still joined to man's right hand.
Woman ends up on man's right side.
This is the Cuddle. You can dance for a while side by side in the cuddle, if you like. Now you are back in the Open Position, and you could stop there, but that would be boring. So man follow through and bring woman into a cuddle, but this time on his left side. Follow mirror image of directions to get into a Cuddle.