The contraction cute first appears in the early 18th century, but only a century later does it begin to take on its distinctive modern meaning; even after 1900 children were still being called cute as a compliment to their intelligence.
Word History: Cute was originally a shortened form of acute in the sense "keenly perceptive or discerning, shrewd." In this sense cute is first recorded in a dictionary published in 1731.
The adjective cute describes something that’s attractive in a pleasing, nonthreatening way. Things that are small or young are often described as cute, like babies, puppies, or toy fire engines.