I’m happy enough with hugging you like this!
Is it better if use “by” instead of “with” in this sentence? Is there another word that would be even better?
“Happy by something” isn’t an English idiom.
The following two sentences are valid English:
I’m happy enough with hugging you like this.
I’m happy enough to hug you like this.
They are almost, but not exactly synonymous. I’m having a hard time explaining the nuance. Happy to tends to mean that the hugging procures joy to the person, while happy with tends to mean that the person is satisfied with the hugging, but I think it’s a little more subtle than that.
Would you like a hug? I’d be happy to give you a hug.
I’m glad for the opportunity to hug you. I’m happy to hug you like this.
We’ve been hugging for a while, and I like it. I’m happy with hugging you like this.
— Shall we hug, or do you want to do more? — I’m happy with hugging you.