I have yet to see a yorkie that isn't a total love bug, but you have to remember they all have different personalities. Some dogs can be more independent and don't like to snuggle or be held for longer than 5 mins. Just thought I'd throw that out there if after all the training she still doesn't allow you to cuddle her for too long. You're baby girl is still so young and curious that I bet she feels she has more important things to do than be held.
I bet she'll grow out of it and be your cuddle bug!
The lunging thing you mention does sound like something you should nip in the bud. My boy lunges at me too. He shows his teeth and looks semi-vicious. But when I don't move I actually get a tiny lick! Weird huh???
Do you have a correcting method yet? If you don't, pick one now! You might have to try a few but once you find one that works for little Chloe stick to it and she'll quickly learn what it means.