Effect
As a plushie, Rawrz is unnaturally durable, and able to take nearly any form of physical abuse. Crushing or bludgeoning strikes bat him around, and his plushie exterior is highly resistant to cutting and tearing. He's also waterproofed and fireproofed. Rawrz does not require food, water or other forms of sustenance, nor does he sleep. He cannot be put to sleep, and is utterly immune to all forms of poison. Any damage he sustains will mend itself over time, though the process is very slow.
Limits
While durable and resilient, Rawrz is hardly invulnerable. Attacks from conventional weapons might have trouble, but a high-powered rifle would make short work of the plushie's exterior. Excluding fire, attacks from supernatural sources also cut through his defenses without much trouble. Rawrz's self-mending ability is likewise limited, and he could suffer true plushie-death if his body suffers too much damage.

Effect
Rawrz has great aptitude with spirit magic, especially when it comes to the realm of dreams.

Dream Ward: Rawrz can shield the dreams of nearby sleeping creatures. In addition to a subject feeling a wave of calm, their dreams become shielded from external entry and the content of their dreams is guaranteed to be pleasant. This ability has a negligible cost, but requires a creature to cuddle with Rawrz.

Dream Walk: Rawrz can enter the dream realm physically, stepping into it with a moderate cost to his internal reserves. He can't bring others with him in the same way, though he can pull others from their dreamspaces, allowing them to project into the greater realm. He cannot drag an unwilling creature out of a liminal dreamspace.

Spirit Fire: Perhaps as a nod to his former self, Rawrz possesses a form of fire breath. The breath weapon appears as pink were-fire filled with rainbow-hued sparkles. Against most creatures, the fire is completely harmless. When wielded against greebles, it stuns them into inaction. When used against a nightmare in the dream realm, it burns them away rather than adding to their substance. The fire has a minor cost to the plushie's internal reserves, though repeated uses can add up quickly.

Greater Rest: When cuddling with a creature, Rawrz can increase their recovery. A creature who is injured or ill that cuddles with the plushie heals at seven times the normal rate. That is, one day of bedrest is the equivalent of a week. The healing is ineffective against injuries or illnesses that can't heal naturally, though it does prevent existing injuries from getting infected.
Limits
Rawrz's spirit magic pulls from the same reservoir of magic that animates him. Using too much of his magic without replenishing it can leave him feeling sluggish, or even render him completely inert. He replenishes his reserve by either eating dream spirits (such as greebles or disrupted nightmares) or by cuddling with willing creatures. Of the two forms, cuddling is by and far the more efficient way to recharge, though it is also quite undignified.
Repercussions
When another creature hugs Rawrz, he suffers a highly addictive sense of happiness. His ability to speak, think, or react all crumble away as cuddling becomes his only goal. The lower his internal reserves are, the more powerful the euphoria is. Regular cuddling will dampen the effects, allowing him some level of coherence as long as he doesn't let his reserves dip too low.