Sofia Vergara and Nick Loeb Get Cozy in N.Y.C.
06/08/2012 AT 01:30 PM EDT
They pair snuggled up together in a corner booth at the preview of Bagatelle New York with a handful of friends, just like old times.
"They we're laughing a lot and would embrace each other with long hugs," an onlooker tells PEOPLE.
The Colombian Modern Family star wore a skin-tight white dress that showed off her famous curves. After dinner, Vergara ordered the Bagatelle Mega Sundae, and even though the kitchen was closed the owners personally made the dessert for her – which Loeb spoon-fed to the actress.
"Sofia was having the time of her life dancing around Bagatelle and chatting up the deejay," says another source. "They later went to Double Seven and they seemed really affectionate all night. They embraced each other and you can tell they're still in love." At the club, the couple danced to tunes spun by DJ Martial.
So are they officially back together?
A Loeb source tells PEOPLE that the couple, who have been in communication ever since they split, still have differences to work out, but really care for each other.
"Nick is crazy about her, and they do have heated arguments and disagreements, but they enjoy many of the same things and have been seeing each other again," the source tells PEOPLE. "There are compromises to work out on both sides."
Whether the pair will go back to being a full-blown relationship is still up in the air, says this source.
Reporting by JENNIFER GARCIA, CARLOS GREER and LINDA MARX