I think hugging is the best, cause it is really comfortable and makes you feel like you are safe and secure arms.
If I simply MUST choose between the two (the third option of "neither" not being available), then I choose hugs. They don't last very long, which is perfect for me, as I don't love physical contact.
I think cuddling is usually better because it lasts longer and is more intimate and more comforting than a hug
Cuddling is pretty much just an extended hug.
Hugs you give to family that you don't even know that well so it really doesn't that much whereas cuddles are more intimate and affectionate interactions among people.