None of these are exactly cuddly, but they are all a very long way from your good ol' cliche-ridden sub-Tolkein Robert Jordanesque extruded fantasy product:
The Good Fairies of New York Martin Millar
The Goblin Reservation Clifford Simak
Little Big John Crowley
Flondrix and Astra Seamus Cullen
The Wallet of Kai Lung Ernest Bramah
Haroun and the Sea of Stories Salman Rushdie
How about a really old classic:
The Thousand and One Arabian Nights
These are SUPER cozy.
Oh, and I've also found that there are many older works that fit - the 80s seemed to have a trend for lighthearted and fun fantasies by writers such as DeChancie, Gordon R. Dickson, Christopher Stasheff, Lawrence Watt-Evans. Just in case you guys need some new suggestions as well ;-)
Well most "cozy" I can think of involve saving the world still. Lots of coming of age stuff below. Can be read by YA and adults alike with enjoyment
David Eddings books
Piers Anthony (more humor...no world saving)
Kristin Britain - Green Rider books, good stories, clean fun
Jim Butcher - Codex Alera, big series, large scale with young characters..but very cozy, one of my favorite series of the past few years
Gail Z Martin - read these for some reason...YA'ish and a little "girly"
And just because I cannot help but recommend Brandon Sanderson any chance I get...read the Mistborn books! not what i would call cozy but great