Wow, heated blanket - this is going to be one spoiled lamb, although at 5 days, it probably won't be essential if you have a kitchen temperature above 3 o4 degrees C. They are not used to central heating like us. I would feed four times during the day until around 4 weeks old. Yes of course its OK to cuddle it - I always cuddle my hand fed lambs and I know at least four farmer's wives (and sometimes the farmers too) who do the same thing -until they are too big, of course. Good luck and have fun.