Something Happen Between Kit Kat and Uncle Desmond?

There's a couple of strange and disturbing scenes with these two. At the wedding reception Kit Kat complains to her uncle that her boyfriend isn't a real man or something while sitting on the arm of his chair and stroking his hand... Soon afterwards there is the scene in the hospital room with the newborn baby. In the center of the screen you see Uncle D placing his hand on Kit Kat's back in what I thought was a subtle hint to the viewer. Then Kit Kat has her breakdown a bit later. I felt they were gearing up for some relevation about them having got it on, but nothing ever came of it... What was that about?

"I'm going to run them off their feet." -Harold Abrahams