Thanks for sharing .After reading the above query ,what I understand is and correct me if I am wrong that this friend of yours cares for you and does not want to loose you . What I understand is that this friend of yours is not ready for commitment but there is something perfect between both of you and this is what makes you both comfortable with each other .
What I understand is that somewhere you too care for him and his saying that you both are more than a friend has resulted in rise of expectation from your side . It is very natural for people to start expecting .but expectations can sometimes spoil the relation
I feel that you should let it go the same way and let things happen the way they have to happen .
what I feel is friend is someone with whom you can be yourself and who wants you for what you are and with whom you can share everything and anything and is there for you always . It is very difficult to find a friend like this .
Now you have to decide what kind of friends are you and how much you both mean to each other and what this friendship means to you
As far as kissing and hugging is concerned ,it should be your decision if you are comfortable or not and how far can you take it ?