I can't help but think "that sounds so cute But I could see where it'd get annoying at night; my cat has the habit of sometimes chewing newspaper (yes, newspaper) into tiny shreds and putting it all over the house. I just want to welcome you to Cat-Owner-Ville, which is a very strange place.
I noticed that some cats retain kittenish habits, even through adulthood. They knead on blankets with their front paws, just like they would when they were nursing. Was this kitty removed from its mom too young I wonder? My friend had one that nursed off of her pregnant Boston terrier!