It depends on the context and how she's using it.
I've been called cute, but in a condescending, little brother way, by women who see me as too young (I get called cute by older women a lot... I think it's their way of showing their interest without seeming too... cougar-like?) It's more of a safe word than handsome, gorgeous, sexy... very easy to throw around by women. Nonthreatening, and I think it doesn't show too much interest, or at least that's what they like to think... I know exactly what they mean when they throw that word around at me...
Anyways, if you're still getting... "results", then I don't see what the problem is, unless you're striving for more a "sexy" vibe, which I think is really just a semantics issue... women will like you for a variety of reasons... some men's strengths are their sexy vibe, their hair, their physique, their conversation, their emotional connection, you name it. It's not always because she thinks you're "sexy" that she'll jump your bones. Just because you're not traditionally "sexy" or the prototypical "sexy" guy, doesn't mean she's not sexually attracted to you, but it also doesn't mean you have to be sexy in order to be laid.
For example, I've noticed the biggest difference in having a sexy vibe with women of different cultures. Asian women (not acculturated to America) are often scared off by too much sexiness... whereas the Latina women I've dated really need that extra edginess and dominance... a difference of culture.
I know a lot of guys that aren't sexy at all. Their appeal is in their humor, their "cuteness", their feminine side (surprisingly), their look (fashion/style). They even lack dominance, leadership, edginess, strength... they're what you might call "beta", but yet... they still get results. Albeit... not with the most high quality women... but desirable women nonetheless.
Some of my closest friends are rather shy, subdued guys, soft-spoken and more feminine in their interaction style and way of being... I don't think it's a coincidence that they are in relationships with women that are more masculine and leader-types. Part of being "sexy" doesn't necessarily mean being a leader... but if you're subservient or a follower... it's not dominant... it's not masculine... and it's not very sexy to women. Power/social power/ social dominance is sexy to women.
I'm guessing you have this need to be recognized as "sexy"... which is an internally driven issue. So... either get more sexy... or just live with being "cute".