Hmm.. i'd say if he's settling back down with just a cuddle and not needing to comfort-suck on anything then he probably doesn't mind not having a dummy. I'm rubbish at getting my kids to sleep so i'm a bit useless for advice, but if he's wanting a cuddle for comfort, it might be worth weaning him off the cuddles and trying to comfort him without picking him up. like cupping his head and rubbing his tummy (or patting his bum if he's still on his side) so he gets used to settling himself without being on you.
He'll probably hate it at first, but if you pick him up and hold him till he's almost asleep, then pop him back down before he drifts off and pat him.. if he gets upset pick him up again and try again. It sounds a bit daft but it did help Noah at that age.
Then gradually reducing that to just sshing him next to the cot so he knows you're there but not touching him. If he gets used to that he might get better at settling himself to sleep, and giving you a good night's sleep! Hope that makes sense!