Dang, you have so many good comments from others. Some very true and others a bit harsh and off subject haha. Anyhow, confidence is a big issue upon finding someone as well as not yearning for a relationship.
If you are a good person and not so shy, I'm sure you have friends. What I'm trying to lead off of that is the fact that friends like you for a reason and someday you might meet someone that has a stronger interest upon your characteristics that makes people like you in that way. Don't look towards a stranger your interested in as a target for a relationship, look at them as a person whom you could be friends with. If all goes well, they will like your true self rather than a shy guy that you place as a protective wall from being hurt or embarrassed. If not a relationship, you could always be friends haha. Upon that, the most common relationship hook-ups are through friends that are somewhat similar in personalities anyhow. So! You never know.
So buy some cloths that makes you look good, happy, and comfortable in for your image. If you have some problems with that, ask a friend for help to whom you trust in "taste" lol. Do a little cardio so you breath easier and feel healthier. And think positive in life. Being positive generates a natural positive ion in your body to which some may think of as an "aura". Vice versa for the negative ion effects.
In addition, try to "expose" yourself more. What I mean is hang out with friends more in gay bars, public events, or something of interest to you or your friends. Not the type of exposure that leaves you bare naked lol. Try to be open-minded in doing your friend's ideas. You never know you might enjoy it and expand your network of people.
Oh one last thing, if you lack the physical yearning to cuddle, hug, etc... with people, try doing one on one activities away from friends and populated places. Not saying that it should be like that all day, but in segments of time. That way you get to know the person your dating in a more in-depth emotional/personal state. Once you find yourselves "fallen" for each other, the physical touching issues should slowly deplete. Some things I'm talking about is a night time stroll on the beach where no one is there; a hike out into the woods; a cup of coffee in the park; etc... Just as long as there are not many people to be staring at you or over hearing your conversations. This eliminates the fear of homophobia amongst others if you have that problem, and an easy atmosphere to listen to each other's stories in life.
~edit and add~
I read the cuddling part wrong. Well upon that, get friends to which you could do those stuff with. It's all upon your comfort zone. The closer the friends like best friends, the less there is of an issue upon that. If THAT is still a problem, get a cat or dog. They are loving entities to which shows affection too. Although it's not the same as a human to human touch, it's more of a temporary solution.
Sorry my comment is long, I talked to a couple of my friends about this topic prior to your initial post. I hope what I said helps. Take care. = )