Problem

Nic tells me that I need to figure out what I want. I know what I want. I want him. Not necessarily as a boyfriend, but I want to be able to call him mine and to have that sort of connotation. But I can't have that because he doesn't want that. And that's okay, I can respect that. So now my problem is finding the backup of what I want. And this is the problem. I can:
1) Cut all contact. This seems the most logical at the moment. Makes it easier when he leaves, stops me getting too attached again, and gives me the independence and him the freedom we want. But I love him too much to actually go through with this. It is too hard, especially when I know he lives 15mins away. So, option
2) Be friends. Pure and simple. Still hang out, still talk lots, still be each others' shoulders, but no sexual contact, which should be the buffer to becoming too attached. This would be easier than no contact because I can still hang out with him. And as our whole relationship was built on friendship, this should be easy. Except for the physical attraction. There is this enormous sexual tension between that I can't stand, and yet love. I simultaneously want him and don't want him. If we spend too much time together we will break. Which results in option
3) Friends and fuck buddies at the same time. Good, because it satisfies our sexual needs and our companionship needs. Bad, because I will get confused as to what we are, and start REALLY wanting him as a bf. Not to mention that it's like we're a couple anyway, just without the title.

So what can I do? Is there a hybrid of the three that will work? How can I tell him what I want when I don't know? Eeek! This is messy. :(