Can coffee grounds be used as mulch in a vegetable garden?

People often use used coffee grounds around young plants to discourage cutworms. Don't know how effective it is though, as I've never tried it.

They do help with slugs and add a little nitrogen to the soil. I would only add it to acid loving plants. I do put them around Hosta but not enough to be a mulch. Mostly I add it to my compost bin.