dragon who has a little plushie rendition of them lovingly handmade by one of the kobolds living in their lair
kobold who has a little plushie rendition of their dragon lovingly made by the dragon so that the kobold can actually hug the entirety of the dragon
both of them at once ! the dragon sees the kobold's lovingly handmade gift, and decides to make one in return; though their claws are very big and it's tough to make a plushie like that, it's a labor of love and so both are very much cherished equally