Yes…
It means I am doing nothing.
And I am working really hard at it.
I do have a work in progress.
I have added to it once in the last week.
I think the expression, Iowegian as it is, comes from the expression “doing squat” which means “doing nothing at all” combined with “diddling around”, the non-sexual meaning of which is “dithering or only working in an ineffective way.”
I humbly confess that I am not that great of a researcher when it comes to linguistic facts and word origins.
I am much better at making things up and creating my own portmanteau words.
But I do have a very good ear for how people actually talk. Especially when it comes to Iowegian, Texican, Spanglish, and Educational Jargon-Gibberish. Counting English and Tourist-German, I speak six languages.
I also humbly confess that I make big mistakes. I have been working hard for a week on editing published books because of how an overreaction to one small inappropriate detail nearly destroyed one of my best books and now I have to deal with the impression some readers have that I write inappropriate stuff all the time.
Yes, I definitely erred…
I also realized I assume everybody accepts nudity as easily as I do.
They definitely don’t.
But naked is funny. And that is not a point about my writing that I am willing to concede.
Doing diddly-squoot can also result in really weird stuff like this Christmas-card composite of my artwork and Vincent Price’s 1967 Christmas tree.
Catch a Falling Star 
Omg, Rock’m Sock’m Robots!
I seriously once almost put them on my Christmas list. But my cousin had a set. And it broke far sooner than it should have. So, childhood heartache averted.