No no no no no.
The word "loli" comes from the word "lolita", which in turn comes from a book called "Lolita", featuring as its main character an adult man who falls in love with a twelve-year-old girl named... you guessed it - Lolita. He's sexually attracted to young girls in general, referring to them as "nymphets".
Given the origin of the word, I think it's safe to say that it is inherently sexual, and therefore not a word I'd use to describe something as nonsexual as "children who are cute." Loli is a word with heavy sexual connotations, even if the person who's using the word isn't aware of them.
So, yeah, call them "cute kids" or something. Don't call them lolis, unless you mean that you want to have sex with them.