Kathy Hilton on Daughter Paris’ Plans for Baby #3! (Exclusive)

Kathy Hilton hosted her annual holiday PJ party!

“Extra’s” Terri Seymour sat down with Kathy, who gushed over daughter Paris’ new baby girl London and said she thinks there are plans in the works for a third baby.

Kathy said of her newest grandbaby, “She is so beautiful and sweet and very alert.”

Kathy is enjoying her time with Phoenix, too, saying, “We did a few swimming lessons… He loves the water and he loves the beach.”

According to Kathy, Phoenix is happy about having a new sibling. She shared, “He is loving it, they are so close apart, they are 10 months apart… It’s so nice because Paris said she would have loved to have a big brother to look after her, so she is so happy that London will have Phoenix to look after her.”

When asked if Paris is already thinking of adding another baby girl, Kathy commented, “I think so… I think the fact that Nicky is her best friend, I think she would like for London to have that sisterly bond as well.”

Hilton also spoke about sister Kyle Richards’ headline-making friendship with country singer Morgan Wade and shared the story of when they all got matching tattoos. She dished, “Kyle brought Morgan over and we spent a lot of time together. I really, really like her… She had this tattoo artist here… I kept it a secret.”

She went on, “Kyle and I are back together, and I wanted to do something and bond, so we did my favorite, which is a four-leaf clover, so it’s special.”

As for Morgan and Kyle’s relationship, Kathy said, “They are very good friends… Morgan had a mastectomy and my mother had breast cancer. Kyle really liked her music and hearing what she was going through, they clicked… Morgan is sober and Kyle decided not to drink anymore, so I think they have been a really good influence on each other and I think they are enjoying each other and that’s all I know.”

Hilton emphasized, “All I want her to be is happy. The children are the most important, my nieces, and Kyle deserves to be happy, she is a wonderful mother and a wonderful wife, she deserves to be happy, she’s worked hard.”

Kathy also opened up about her holiday season, saying, “It’s a lot of fun and festive, it’s my favorite time of year.” She noted, “Ever since I was a little girl… I love holidays and I think we have to celebrate the good times.”

Kathy loves the process of entertaining, commenting, “Nicky and I are actually doing a tabletop line… Really everything for the home.”

Wearing a Printfresh robe, Kathy was happy to discuss the event. “Tonight is about animals — animals are peoplen too. We are doing a charity tonight for Camp Cocker, and then of course Animal Haven. Nicky and I are doing the pajamas… And of course the Union Rescue Mission, we had to do something… There are a lot of dogs up for adoption, there are a lot of homeless people, and it’s getting cold out so we have to do everything we can.”

Thanks to Kathy and Nicky’s collaboration, 10% of proceeds from the sale of Printfresh’s Happy Howlidays Print line will be donated to Animal Haven and Camp Cocker through 12/31.