My guy friend, a very good one, keeps calling me cute, and has given me a petname "beautiful" :\

I am single, as of now, and I like it that way.

I don't like him in that way either.

I don't know how I can politely respond to him complimenting my looks without making it worse!

Help!

He is your friend, take it gracefully and make no big deal of it. Or deflect his compliments with humor, but let it be known its friends only. Does he know your interests are on someone else?? Why NOT? He is a friend.

Well don't rush and jump to conclusions. He might not even like you the way that you are thinking. He might say those things to make you feel good or because it comes from his heart and he truly means it. And a way that you can respond is by easily saying thank you or OK.