Seeger is just wrong. "Sheep" is "koyun", "heart" is "kalb" and so "heart of sheep" would be "koyunkalbi". Pretty unlikely as a placename.

In modern Turkish the spelling would be Canköy. The C is pronounced like English J. The second syllable is a diphthong (reflected in the Russian/Ukrainian/Yiddish spelling). For these two words there is very little variation in Turkic languages, and you find them in placenames as far away as the shores of the Arctic Ocean.

"Can" has a wide range of meanings - "Coke adds life" was translated into Turkish as "Coca-cola can kanar", which could equally well mean "Coke enlarges the soul". "Darling" is perhaps the most-used meaning for the word, though not semantically central. I suppose "darling village" might be a possible interpretation, like "dear green place" for "Glasgow".