Ok...my two pence.
Firstly, I see nothing wrong with a loving parent having a morning cuddle with a child in bed, at the child's request, not forcing it or ignoring boundaries/discomfort. She will probably get uncomfortable at some point in the next few years as others say.
Secondly, this is quite timely for me. I was talking to a lovely man yesterday who is definitely not some sort of a abuser and he mentioned how great it is having daughters as they are so open hearted and loving and he wished his sons had the sort of societal permission to still hug like they did when they were little. He said something like, my boys would never want a hug after about age 10, but my girls are in their 30s and will still come and sit next to me on the sofa and give me a great big hug and cuddle up when they need me and as a dad it's great to be needed and know they sometimes still need their father.
And I had to hide the fact I'd started to cry. Because I had never had a father I could cuddle. And I did need it at times. I could never go to him to make me feel safe. He's just not an affectionate man.
So can you guess what happened around 11/12 when I just needed a bloody good cuddle and someone's arms around me to make me feel safe? It made me very very vulnerable around boys and men. I'm quite lucky to have escaped some of the worst types of abuse but I didn't escape it entirely and ended up having unwanted sexual experiences around 12/13 when all I wanted was some attention and affection from a male figure.
Having a cold, emotionally unavailable dad really fucked me up when it came to relationships and is a big part of why I'm single and childless at 40 because my baseline was so low and it led me directly into the path of abusive men. I've noticed that friends who had great relationships with their dads, and dads who were respectfully physically affectionate and openly loving towards them settled into much healthier relationships at a young age than women like me. My mothers dad was similarly unaffectionate and would have rejected her request for morning cuddles and attempted to sexualise it/call it inappropriate. She ended up pregnant in her teens to a man in his 40s who basically targetted and groomed her and she always says she never wanted sex with him,
she just wanted a father figure and she'd never known her dad to put his arms around her.
So I see what you're describing as a good and healthy thing, not anything perverse or creepy.
Let the cuddles continue as long as she wants them. She's most likely going to have far better relationship standards than I ever did.