Kneeding and sexual behavior?

I have a male persian kitty, at least a year old and neutered (from a persian rescue). He loves to kneed on me several times a day when I'm in bed, mostly at night or in the morning. He likes to straddle my arm when doing this. When he does this, his little male member comes out and eventually he starts cleaning it. Is this some form of sexual gratification along with the kneeding nursing behavior?

Well, not really. Persains are very good kneeders though. He was neutered a little late and the sexual behavior wasn't stopped in time. It's not that he's combining the two. He is very relaxed and happy, so it just happens.