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Teacup means a dog under 4 lbs and under 7 inches tall. Teacup is a not an official term, it's just a casual term to describe a small dog. No, I definitely do not think that pugs get that small. Also cross breeding a pug with another breed-- like a teacup poodle-- would not result in a teacup pug anyway because the pug mother is still too big. Plus the puppy wouldn't even be a pug, but a mixed breed.
Domestic dog (Canis lupus familiaris) The Pug is a breed of dog with physically distinctive features of a wrinkly, short-muzzled face, and curled tail. The breed has a fine, glossy coat that comes in a variety of colours, most often fawn or black, and a compact square body with well-developed muscles.