No babies. Nope nope nope. I am sticking to Snape's premise that polyjuice only stretches so far, and there's no way to make Harry into "really" Lily. And I'm hoping that Harry eventually will deal with being Harry most of the time. Anyone who wants the mpreg sequel will have to write it herself.
I am glad that Lily's identity wasn't immediately obvious. And glad you liked it! Yay!