The balancing point of “cozy Lovecraftian horror” is going to be subjective. It needs to at least work as a weird tale on its own; it needs to be a part of or allude to the Mythos in a way that the readers can recognize and respond to. Jose Cruz’ four elements of Familiarity, Sensuousness, Distance, and Fun are all important—but three of those, at least, are typical of most Mythos stories by default. Readers rarely identify with finding our great-great-great-grandma was a Deep One or Ape Princess, or experience the anxiety of living in the attic room of a witch house and dealing with an extradimensional rodent infestation when they really should be focusing on their finals. The Fun aspect of cozy horror is probably the trickiest and most argumentative aspect of the whole business.
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