Hug Time, by Patrick McDonnell, Little, Brown and Company, 2007.
I ordered this book for my six-year-old son, hoping to receive it in time for Valentine's Day. It was a little late, so instead it arrived on Tuesday (the 17th). Turns out, this book wasn't late at all, because this is the story that my son told me that evening BEFORE we even read the book:
Once upon a time, there was a watch. The watch was for telling time. Thomas can tell time. He can tell when it is squeezy-hug time.
As with so much with my son, the timing turned out to be absolutely perfect. Because it is always Hug Time.