I dunno, on a physiological level I think "cuteness" is more about "big head, big eyes", and that then triggers some hormones or something that make us fall in love with our kids.
That said, it's hard to dismiss the "mother duck syndrome" that young kids seem to have. They follow us around, gaze at us in admiration, mimic our sounds & movements, and always want to be doing and involved in whatever we're doing. Does this mean they think we're cute? I don't know, but they're clearly expressing love and admiration.
On another level, it's really clear that both our kids (10 months, 2 1/2 years) think that our cats are cute. They giggle when the cats do something funny, they like to pet them, and in general, seem to really enjoy being around them. (The cats, on the other hand, don't seem to find the kids as compelling.)
So, I think kids do see and understand "cuteness" in the same way that adults do, but I think that what they feel for their parents is probably more like really deep infatuation.
