Kutty is a Tamil-Malayalam surname. The word kutty in Tamil/Malayalam means a cute baby or child; for example, "aadu" means goat in Tamil, and "aadukutty" means baby goat (kid). In Tamil/Malayalam "kutty" is more often a suffix, and does not usually become a surname.
List of persons with the surname
References
Kutty (surname) Wikipedia(Text) CC BY-SA