Cute is a good example of how a shortened form of a word can take on a life of its own, developing a sense that dissociates it from the longer word from which it was derived. Cute was originally a shortened form of acute in the sense "keenly perceptive or discerning, shrewd." In this sense cute is first recorded in a dictionary published in 1731. Probably cute came to be used as a term of approbation for things demonstrating acuteness, and so it went on to develop its own sense of "pretty, fetching," first recorded with reference to "gals" in 1838.
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