hugs button is at the bottom of the post and to the right....next to the reply, quote, quick reply and thanks buttons. just click it and it adds a hug to the post that you are reading.

if you mean inside your post you are writing look to the right, theres a bunch of smilies. and click on he one you want.

example....

you can also put the person's name in brackets that you want to hug

(((((Jen))))))