How do I respond to a guy calling me "cutie"?

Anonymous
I met this guy through a mutual friend. He likes me and he even had my friend ask me if I'd go out with him. My friend told him I'm talking to someone else. I'm not, but she knows I really like someone else I've been friends with for a while. Anyway, her friend started talking to me on fb and we were talking for a while so he said to just text him. We've been texting off and on for a several weeks. He's really nice and fun to talk to, but I've barely spoken to him in person so we really don't know each other that well. He asked me about the guy I'm talking to and said he didn't want to ruin whatever I have with him. I told him that just because I'm talking to someone doesn't mean I can't hang out with other guys and be friends with them. I thought he got the hint that I just want to be friends for now, but I don't think he does.
He's called me hun several times and he told me I'm pretty a few times. Now he sent me a snapchat saying "how are you cutie?"
I don't want to lead him on because I'd feel awful for that if it turns out I don't like him when we do hang out, so do I not respond? Do I ignore it? What do I do?
How do I respond to a guy calling me "cutie"?
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