Think about how you want her to behave and not about what she's doing wrong. Its easy to forget to praise when they're being good....so praise her for any behavior that you like...even just sitting on a perch.
I live with 7 large cockatoos of my own and get to play with around 150 at various times of the year and these are active birds that really can enjoy taking walks, playing games, clicker training they LOVE, watching you dance, sing and act silly, showering with you or hanging out on the sink doing dishes......etc. There's so many ways to interact other than cuddling which can tend to eventually get them in trouble. Cuddling isn't a natural activity for these guys. the closest thing is when they are actually hormonal and they will take their beaks and stroke them firmly down each others back....to excite each other.
If your going to cuddle its helpful to remember that most of the bird's body is excitable .....the safe area is the head, where other birds would be preening her. Beak can be a turn on though. And the feet.
Also make sure she's getting a healthy dose of exercise...by flapping, playing, taking walks and such.
Shauna...who DOES steal the occasional cuddle

but keeps it short and watches body language....closely