According to an eyewitness, Kate, 21, and Blake, 24, were at New York hotspot Beauty & Essex together and then partied at Avenue nightclub, dancing the night away.
"Blake arrived first with a group of friends around 10:30 p.m. and then Kate strolled in around 11:30 p.m. to join the group," the insider revealed.
"Kate and Blake were cuddling and holding hands. They looked like they were having a great time in each other's company."
The insider tells Radar the group was there to party — taking shot after shot of Don Julio tequila.
"Blake and Kate danced all night long with each other at Avenue," the source said.
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