Cotto was involved in a lot of good fights and this would be no exception. Ultimately I think Carlos's superior durability would be key as he stops Cotto late, or wins a decision.
I would go with Palomino via decision. I see it back and forth, very competitive. But I think Palomino has better late rounds stamina and in a 12 rounder wins a clear decision. In a 15 rounder, I'd say he gets a stoppage.