I'm ashamed to add this to the list, but here goes:

Tootsie Roll by the 69 Boyz
Cotton candy, sweet and low, let me see that tootsie roll

There is also a song called Cotton Candy by the Insane Clown Posse, but their cotton candy references are definitely a euphemism for, uhhh, well, I'll leave that to your imaginations.

I found a song called Cotton Candy by a group named Venice:

Hey Cotton Candy
Are you really who you claim to be?
Did you speak the same language
When you were twelve?
Sweet Cotton Candy
Your favorite song is on the radio
Where the middle, just like the end,
Sounds like the beginning

Well you say you hate the opposite
But you sway like the opposite
So affected, are you infected by the groove
Yes I'll buy you a drink 'cause you entertain me
There'll be no judgement
We've all our cross to bear
Yeah we do

Oh Pink Cotton Candy
All the taxi drivers know your name and address
What a mess, you've torn your dress
Oh Blue Cotton Candy
Did your Daddy hug you at the door?
Did your momma lend you her pearls and her perfume?

With your moonbeams and radiance
How you still love an audience
And while you were talking
The run in your stocking ran away
Yes I'll buy you a drink 'cause you entertain me
There'll be no judgement
We've all our cross to bear

Cotton Candy, sweet Cotton Candy
Pink Cotton Candy, blue Cotton Candy

There is also an Elvis song called Cotton Candy Land:
Sandman's comin', yes he's comin'
To sprinkle you with sand
He'll say "one, two, three"
And you'll be, In cotton candy land

Sandman's comin', yes he's comin'
He'll take you, by the hand
And you'll ride upon, a big white swan
In cotton candy land

You and the swan will float upon
A cloud of pink ice cream
Where every star is a candy bar
And the moon is a marshmallow dream

Sandman's comin', yes he's comin'
Take his magic hand
Now goodnight...now sleep tight
In cotton candy land

In cotton candy land