Great questions Kat!
Since we brought Kyson home he's been co-sleeping with us. We have his cot pushed up against my side of the bed and I have my body pillow (the long one) tucked between the bed and the cot to form a sort of buffer to stop Kyson from rolling into a gap. He usually sleeps on the outside of my side of the bed, but sometimes goes in between
DH and I too. I tend to have him around chest level because more often than not I have him cradled in my arm (not sure if that's the safest way though...). We don't usually share our bed coverings with Kyson because he's usually either swaddled in a couple of wraps, or in the sleeping bag we are trialling.
I sleep facing him all night, unless he is in the middle of the bed and
DH is cuddling him. I also generally keep him on his back. The only time he's not is when he's unsettled and I'm awake and cuddling him close, during feeds when I try to stay laying on my side (I'm still finding that a really difficult maneuver though), or if he has bad wind I tend to lay on my back with him laying with his head and body against my chest and his legs on the bed (so he's at a 90 degree angle to me) so that he can be more upright. When he's across my chest my plan is usually to only have him there until he falls asleep and then I'll move him, but I often fall asleep with him like that, oops!
I'm really enjoying having him close to me all night and it just feels "right" for him to be close all night. Sometimes I stress about some aspects of co-sleeping like you are, but I think I would be more stressed if he was further away from me. It must be nice for him too to be so close to his mummy and daddy
