Glad you're having fun with it.

Off the top of my head, the primary goals for the fluffy game are:
Able to have 1-6 fluffy ponies. You can give your fluffies individual names.
Each fluffy pony remembers who the others are, and how much they like or dislike them.
They also know each other names and will use them in speech balloons, with a filter converting them to fluffy-speak.
The player does not have a visible avatar, instead you interact with the fluffies via your mouse cursor.
The fluffies will eventually be able to see your cursor, and react to it based on your behavior.
For instance, fluffies who you have hugged and petted a lot may run or skip towards your cursor, eagerly asking for hugs.
However, if you have the "sorry stick" tool selected, they may run away, or try and hide under their hooves when you get close.
There will most likely be six tool icons.
Examine, Hold/Carry, Pet, Punish, Speak, and Item.
- Examine tells you your fluffy's stats, health, and gives you a copy-pasteable password to "save" your fluffy.
- Hold/Carry lets you move your fluffies (and other objects in the room) around.
Fluffies will react differently to being held based on your treatement of them and how much they trust you.
Eventually, the way you release the mouse button will affect how you put them down.
Just releasing the button will gently put the fluffy down.
Moving the mouse fast, then releasing it, will THROW the fluffy.
This can injure them, but Fluffy Pegasi will LOVE it and ask for more.
Fluffy Pegasi will also start rapidly gaining happiness/trust if you just carry them around for a bit, as they feel like they're flying.
- Pet lets you love your fluffy and makes them like you more.
Pet also increases Fluffy's happiness, and acts as positive reinforcement for whatever the fluffy did last.
This is important, as petting the fluffy increases the chances of it performing whatever action it last INTENTIONALLY did.
You can train your fluffy to do tricks by praising it when it does.
You can also screw up your fluffy intentionally by petting it for doing stupid things. (Eating blocks, pooping in the wrong place).
Petting a fluffy when it cries will make your fluffy a crybaby - it will learn that crying gives it loving attention.
Petting a fluffy that has just injured itself is dangerous because it will make the fluffy more likely to repeat the action that hurt it.
Incidentally, "huggies" from other fluffies have the same behavioural modifications as being pet by you.
- Punish is the opposite of pet - hurts your fluffy, makes them like you less.
Punishing also reduces the chance of your fluffy repeating its last action.
Use it to stop fluffy from doing something you don't want (pooping outside the litterbox, harming other fluffies).
You can screw up fluffies intentionally by punishing them for doing things that are vital to their survival (eating, sleeping).
If Fluffy's intelligence is high, there is a chance of it responding to punishment with "Fwuffy sowwy! Fwuffy no more ____"
(where ____ is the last action Fluffy remembers taking.)
Petting Fluffy at this point does not increase happiness, but cancels out any loss of trust
And GREATLY decreases the chance of Fluffy repeating the "bad action".
- Speak lets you talk to your fluffy.
I'd intended this to be point and click done via a list, but someone suggested actually typing things in.
I don't know how feasible that is, but I'd love to try and see if I can make it work.
You can praise your fluffy to achieve a similar effect to petting if you say something positive
("Good fluffy", "I love you", "hug", or any sentence with the word "Treat" or "spaghetti" in it)
You can also get the same effect as punishment by using negative words
("Bad fluffy!", "bad poopies", "sorry stick", or indeed pretty much anything with "bad" or "sorry" in it.)
You can also give your fluffy orders that it may obey depending on how intelligent/loyal it is.
("Use litterbox", "hug Bluebell", "eat blocks", "play ball")
Typing "water" will kill your fluffy instantly.
- Item lets you use items from your inventory, either placing them in the room or using them on your fluffy directly.
Some items can work either way - you can put them in the room and let the fluffies discover and use them on their own,
or you can click directly on a fluffy with the item to "give" that item to the fluffy.
Certain items will boost their happiness a great deal if you do this. (Blocks, ball, bowl of spaghetti)
Others will make them very unhappy. (Sorry box, most washing equipment.)
The fluffies' personalities will change through these the same way as they do with pet/punish.
When a fluffy is done using an item (they stop on their own, except for the Sorry Box which requires you to let them out)
The item will remain in the room and other fluffies will notice it/interact with it.
In the case of toys, like blocks and the ball, fluffies will use it and become happy.
Having the sorry box around will make them nervous and run away when they get close to it, also getting less happy.
Empty spaghetti bowls will make them run up excitedly, then sob in disappointment.
Fluffies can also react to items that are being used by other fluffies.
They may ask to play together or share food.
If they dislike the other fluffy, they may push them over and take their toys or nummies.
This behaviour can be changed by punishing or rewarding them for each action.
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Beyond that... basically, fluffies' behaviour is based on random numbers plus modifiers.
Each object (your cursor, other things in the room, other objects) has a score of how interesting it is to the fluffy.
The more interesting something is, the more likely the fluffy is to interact with it.
The fluffy then "rolls" to decide which action it will take with that object.
Which actions are available depends on the object, and how much fluffy likes/dislikes it.
For instance, if the object is another fluffy, and the fluffy is friendly to it, choices might be "hug", "play", "talk".
Each action also has a score based on how much the fluffy wants to do it.
This score goes up or down via the previously explained pet/punish mechanic.
Therefore, once the code is correct, you should be able to train your fluffies to do pretty much anything with enough patience.
Imagine having beaten a fluffy every time it enters its hug animation...
This results in a traumatized fluffy running away from all the others, crying "No wan' huggies! Huggies bad!"
Oh, and also: fluffies have health. (Probably 10 HP). They will visibly become scruffier and move slower/limp when seriously hurt.
Fluffies require medical attention (bandage, first aid kit item, or a vet visit) to restore health.
Despite fluffies' beliefs, huggies do NOT restore HP.
If fluffy's health reaches zero, it dies.
Fluffy body will remain in the room until you remove it, causing other fluffies to wonder "why fwen' no wake?" and eventually cry.
Fluffy's HP can be reduced by being hit by you, falling, a HUGE amount of attacks from other fluffies, or various accidents.
Whew! That was longer than I expected. Anyway, that's the basic rundown as to how the game will work when done, ideally.
Any suggestions or ideas are always welcome!