What does he mean when he says "You're so cute"?

I was talking to my 38-year-old male teacher because he and his wife just had a baby. I said, "How's the baby? I'm so happy for you, congratulations!" And he said "Thank you, you are so cute!" Lol I was hoping he meant it in a baby way, not in a I-find-you-physically-attractive way.
What does he mean when he says "You're so cute"?
Post Opinion