The Dead Accounts actress—who split from Tom Cruise, 50, in June after six years of marriage and was awarded sole custody of their daughter Suri, six—is embracing her independence to the full and plans to spend Valentine's Day spoiling Suri with homemade pancakes.
The insider said: "Katie was so sweet and just so happy. She came in with her mother and her Aunt was just so excited to be together for a girls' weekend. Katie kept talking about how her sister and niece were coming to town that day to spend the weekend all together. She was walking through, nibbling on every piece of chocolate, taking tiny bites and then sharing the rest with her mom.
"Katie said that this year she would be spending Valentine's Day with [her daughter] Suri, keeping alive the tradition of making red pancakes."
The actress was previously reported to have started dating again but is worried about giving up her new found freedom.
A source recently said: "Katie's in a dilemma, because she wants to date but is concerned where it could lead to from there.
"She's worried that if she commits herself fully to another man, she will have to give up the freedom she's enjoying so much at the moment. As a single woman, she has no one controlling her nowadays, telling her what to do or who to see and she absolutely loves it!
"However, at the same time, she also misses being with someone special to share experiences with and she doesn't want to be alone for the rest of her life."