It all depends are where we are in the house. In the bed, she has her pillow that she sleeps on. She'll licks me on the eyelids every morning to wake me up at which point we do our little morning cuddle routine. In the family room, she has her foam doggy house that she likes to sleep in. I have to get pics because she sleeps in it backwards. She sleeps on her back with her hind paws sticking out of the opening....so adorable. Downstairs in the finished basement she sleeps on the couch with me.
She will let me cuddle her but for the most part she likes to sleep or sit where she wants to. I think it is because I move around so much. Just as she is getting comfortable, I suddenly have to get up for some stupid reason. She does have to be in the same room as me and her royal highness will let me cuddle her for as long as I need to as long as it only last for 10 minutes or less
My last yorkie sleep on my chest and would stay there until you move. She also liked to sleep under the covers right next to me.