Flirting or just being funny?

As others have already pointed out, "jokingly" complimenting you is a textbook way of flirting. He probably is a little scared to tell you how he feels outright (that would leave him very vulnerable) so he goes about it through humor. That way, if you don't respond favorably, he can always fall back on "I was just kidding, anyways" and not be crushed.

Based on what you said, he's comfortable with physical contact between the two of you, he finds you worth complimenting, and he's putting in the effort to try to involve humor in your interactions. For most guys, these clues would indicate that he's attracted to you. Does he act this way around other girls? If he only acts that way around you, that's also a clear indication of his attraction.

If you don't feel comfortable approaching him and telling him directly how you feel, I would recommend flirting back! Give him some indication that you're receptive to his ambiguously flirtatious antics and he'll feel more at ease about revealing his feelings for you.

A compliment delivered in a joke is textbook flirting: he doesn't want to sound needy and lame by complimenting you outright, BUT he can still let you know that he sees something about you that he likes.

The hugs are the same thing: it's his way of easing into physical contact with you that you're both cool with.

If you like him, respond with playful contact of your own and flirt back. Your mutual feelings should escalate the situation and could lead to something...

Good luck!

He's flirting. The best of luck to you.

he is flirting lol. He jokes with you so its not obvious.
thats like flirting 101

might be he is flierting with you and might be not...take some time and things will be clear for u...

This always happens to me...it's flirting. Flirt back! :)