You can have pups in both forms. In your animal form, they will be born that form too. They won't shift into humans for awhile, as shifting starts to develop with the onset of puberty. (rarely earlier). However, they will have slight human tendencies, for example relying heavily on their parents in their life, and a more complex language than ordinary animals. If the pups are in human form, they are vice versa. They will have animal like reflexes and instincts, along with more heightened senses.
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