I think you need to talk to him about it, and create a mutual understanding that meets both of your needs in a healthy way. He probably is affectionate and wants to feel close to you. And you need to feel safe, and know that his affection is not sexual in any way. Be direct and talk to him. Tell him that you understand that he wants to be affectionate with you...but that you need to know that there will never be anything sexual and that he will never cross any boundaries with you. No inappropriate touching, and no being so close that you can feel him. Tell him something like this.....If he will promise you 100% that he will never cross these boundaries, that he will respect you, and that he will always act in a way that makes you trust him, then tell him that you are willing to be affectionate with him. This won't be an easy conversation to have, but it's important.
Don't just shut him out. You are his little girl and he needs your affection. Improve your communication with him. Establish boundaries and build trust between you. Try to build a healthy relationship with him. There's nothing wrong with cuddling with your dad after you have established boundaries and learn to trust each other.