The Palace reacts with joy tempered by caution due to Kate's severe morning sickness

By Michelle Tauber
Updated December 05, 2012 08:00 AM

They’re having a baby! Now what?

With the big news that Prince William and Kate, both 30, are expecting their first child, friends and family greeted the announcement with joy – and caution.

The Duchess of Cambridge remains hospitalized with a severe form of morning sickness.

“There is a real excitement,” a royal source tells PEOPLE in this week’s cover story, “but obviously people are anxious about the Duchess.”

The couple had hoped to keep the news secret until at least Christmas, but Kate’s illness prompted them to reveal it early.

Palace sources say William informed the Queen, his father, Prince Charles, and his brother Prince Harry – the British Army captain is currently stationed in Afghanistan – before his wife was hospitalized Monday, with friends only hearing the announcement when it went public.

Not surprisingly, the pair timed the pregnancy so as not to overshadow the Queen’s Diamond Jubilee, nor to disrupt a major foreign tour.

“I don’t think anything is left to chance,” says Majesty editor Ingrid Seward. “Kate is probably one of the most organized [royal] women we’ve ever known.”