Scrabble Dictionary

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Yes, cozy is playable

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Found in the following dictionaries

Enable (Words with friends)
SOWPODS (Collins Scrabble Words)
OTCWL2014 (NASPA Word List 2014)
TWL06 (NASPA List 2006)

"Cozy" Definition

noun

A padded or knitted covering placed especially over a teapot to keep the tea hot.
A padded covering especially for a teapot to keep the contents hot.
A light detective story that usually features a well-educated protagonist and little explicit violence.

adjective

Informal Marked by close association for devious purposes: a cozy agreement with the competition.
Marked by friendly intimacy. See Synonyms at comfortable.
Snug, comfortable, and warm.
Enjoying or affording warmth and ease .
Marked by or providing contentment or comfort .

verb-intransitive

Informal To try to get on friendly or intimate terms; ingratiate oneself: "out on the . . . hustings, cozying up to reactionaries and racists alikeā€ ( Chuck Stone).
To make oneself snug and comfortable: cozy up with the Sunday paper.

adverb

In a cautious manner .