I can put my arms around it and can hold it in the palm of my hand.

I love mine and you love yours.

Nothin' says lovin' like something from the oven.

What is the answer to this riddle?

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The answer to this riddle is a "hug." The riddle is describing something that can be wrapped in your arms and held in the palm of your hand, which refers to a hug. The statement "I love mine and you love yours" suggests that everyone enjoys receiving and giving hugs. Lastly, the phrase "Nothin' says lovin' like something from the oven" is a play on words, implying that a hug can be a warm and comforting gesture, similar to something freshly baked and comforting from the oven.