The Spider-Man & Friends Action Pal Superhero collection from Hasbro is probably the cutest incarnation of some of the most famous Marvel characters. As far as I know only three were made; Spider-Man, Hulk and The Thing. Lucky for us, not too long ago I got all three on Ebay for a couple of bucks each (they are now rather hard to find).
Standing at about 9" tall, they made of plastic but also materials, giving them a soft look and feel. Needless to say that each night my son sleeps with one of them and actually ends up holding it for most of the night.