Kate Hudson and Matthew Bellamy may have officially called off their engagement since X17online broke the story of their split last week, but it seems the "former" couple is having second thoughts!

X17 photographers spotted Kate and Matt leaving her Pacific Palisades home this morning to head out for breakfast after having spent the night together. And this isn't the first time the two have co-habitated since the "breakup." Matt's been staying with Kate ever since he touched down in LA on Monday.

Sure, the two have son Bingham together so they could just be friendly co-parenting, but somehow we think there's more to it than that ...

Plus, it looks like Kate's been double-dipping for a while ... back at Halloween time, the actress was spotted getting her flirt on with Dancing With the Stars hottie Derek Hough at Cindy Crawford and Rande Gerber's Casamigos party, but she went home with Matt -- he was her designated driver and picked her up at the end of the evening, even though he didn't attend that party himself. Yikes!

So is Kate having her cake and eating it too, with her baby daddy and her dashing dancer boy both getting a piece of the action?