Here's the snippet that works for me, maybe u should give it a try:
public static Cursor createHiddenCursor() {
Toolkit tToolkit = Toolkit.getDefaultToolkit();
Dimension tDimension = tToolkit.getBestCursorSize(1, 1);
BufferedImage tCursorImage = new BufferedImage(tDimension.width, tDimension.height, BufferedImage.TYPE_INT_ARGB);
Graphics2D tGraphics2D = tCursorImage.createGraphics();
tGraphics2D.setBackground(new Color(0.0f, 0.0f, 0.0f, 0.0f));
tGraphics2D.clearRect(0, 0, tDimension.width, tDimension.height);
tGraphics2D.dispose();
Cursor tHiddenCursor = tToolkit.createCustomCursor(tCursorImage, new Point(0,0), "HiddenCursor");
return tHiddenCursor;
}