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1.
It's mexican form of calling someone a redhead...
"Hey Canelo me traes una Caguama..."

Rough translation:
"Redhead where's my 40?"
af Decima_Dimension 21. september 2011
 
2.
A dirty sanchez,dirty jose from the Canelos family. Or some random spic.
Jd is a dirty canelos
af Alex 18. april 2005
 
3.
it´s a spanish slang to name a joint.
''I´m gonna make a fucking blunt''
translation: Me voy a hacer un CANELO''
af Maxsgcrew 27. august 2009