An eyewitness tells PEOPLE that Miley Cyrus got hot and heavy with Good Charlotte guitarist Benji Madden at a party at West Hollywood nightclub Bootsy Bellows on Thursday night hosted by Adam Lambert. It was Lambert who brought Madden to Cyrus's table.
"They were really into each other," the eyewitness at the Ciroc-sponsored party said about Cyrus and Madden. "I saw them making out at one point, and his hand was on her legs the majority of the time. They were very touchy-feely."
Still, a source close to the "Wrecking Ball" singer, who came dressed as Lil' Kim – pasty and all – says it wasn't as hot and heavy as all that.
"Nothing happened between Miley and Benji," says the Cyrus source. "After being introduced at the club, they chatted but it wasn't romantic. They left the club with a group of people and went to a house party. Miley and Benji had fun together, but they didn't hook up."
Adds another onlooker: "Miley was smoking and Adam asked for a drag before returning it to Miley. She and Adam sort of danced together. She shimmied to a remix of Rihanna's 'Pour It Up,' and her table was then joined by Benji Madden."
Cyrus, 20, and fiancé Liam Hemsworth split in September, while Madden has previously been linked to Paris Hilton and Holly Madison.
Reps for Cyrus and Madden did not respond to requests for comment.