Literally, “that’s cute” means something is nice, adorable, sweet or quaint. But if “that’s cute” (or “isn’t that cute”) is said in a joking or mocking tone, then it can be a sarcastic comment that’s used to try and annoy someone. It sounds fine as a sentence (that’s cute = that’s nice).

It sounds as if your pal was a bit sarcastic. It's not what another guy would normally say to his friend. A female might use this expression.

is that: many dreams that came true?

I think your pal means awesome or something like that.....hihihi....I'll say that's great or that's wonderful.

http://www.wordreference.com/ This is the best dictionary.It translates from: Español | Français | Italiano | Deutsch | Português | Русский | Polski | Română | Čeština | Ελληνικά | Türkçe | 英汉词典 | 英和辞書 | 영-한 사전 | قاموس إنجليزي - عربي