Cookie cutter/cutting is an unethical SEO method. It's a method of making templates or pages that are all identical except for the search terms in each of them. Don't do it!
What better place to find out what a cookie cutter is? According to the definition of "cookie cutter" on dictionary.com: Used as a noun: a device, usually of metal, for cutting shaped forms, as circles or stars, for cookies from dough that has been rolled flat. Used as an adjective: 1) having the same configuration or look as many others of a given kind; identical: rows of cookie-cutter houses. or 2) lacking individuality; stereotyped or formulaic: a novel filled with cookie-cutter characters. If you're talking about it from an SEO perspective, it typically refers to doorway pages which are a violation of Google's Webmaster Guidelines.