I do not think angels physically breed in sex. I’m pretty convinced they don’t have reproductive capabilities and appendages. No, I will not have an argument with you over whether angels have penises. If you want to have that argument it won’t be with me!
The angels took on human form in order to breed with humans:
Genesis 6:2-4 (WEB):
(2) God’s sons saw that men’s daughters were beautiful, and they took any that they wanted for themselves as wives.
(3) Yahweh said, “My Spirit will not strive with man forever, because he also is flesh; so his days will be one hundred twenty years.”
(4) The Nephilim were in the earth in those days, and also after that, when God’s sons came in to men’s daughters and had children with them. Those were the mighty men who were of old, men of renown.
As it says in Jude 1:6 (KJV):
(6) And the angels which kept not their first estate, but left their own habitation, he hath reserved in everlasting chains under darkness unto the judgment of the great day.
The Greek word that is translated as habitation is
oiketerion, which is the same Greek word that Paul uses in 2 Corinthians 5 when he talks about the change from our human body to an immortal spirit body. In fact they are the only two places in the Bible that the word is used.
2 Corinthians 5 (WEB):
(1) For we know that if the earthly house of our tent [i.e. our human body] is dissolved, we have a building from God, a house not made with hands, eternal, in the heavens.
(2) For most certainly in this we groan, longing to be clothed with our habitation [oiketerion] which is from heaven;
(3) if so be that being clothed we will not be found naked.
(4) For indeed we who are in this tent do groan, being burdened; not that we desire to be unclothed, but that we desire to be clothed, that what is mortal may be swallowed up by life.
(5) Now he who made us for this very thing is God, who also gave to us the down payment of the Spirit.
(6) Therefore we are always confident and know that while we are at home in the body, we are absent from the Lord;
(7) for we walk by faith, not by sight.
(8) We are courageous, I say, and are willing rather to be absent from the body, and to be at home with the Lord.