Sounds like very good news. If kitty is eating as usual, then things are looking up.
She's back to mugging the others for their food again...
She's not drinking as much as I'd like to see, but that's probably because she was on an IV until yesterday afternoon and the recovery food is very hydration-intensive.
Last night she totally refused milk, but this morning she had a couple of sips. I know that excessive thirst is a bad sign in cats, and that appetite would go before drinking would as far as dehydrating her her again is concerned, so I'm not too worried, but I'm keeping an eye on her.
The only references on the net I could find to pets eating but not drinking (rather than the other way round) was one in the same situation - having just come off an IV, but drinking returned slowly after a day or so.
But since she's eating, and her appetite is increasing, I'm hoping that'll keep going and she'll get a normal thirst back. (Obviously I don't know how much water she's drunk overnight, if any.)
But at least all the evidence does point to the dehydration and being off her food messing (briefly) with her kidneys rather than the other way round.
ETA- it seems to be just milk specifically that she's not fancying much - she seems to be perfectly happy to drink the juice out of tinned tuna...