The Playboy founder recently met his ex-girlfriend's three-month-old son Hank Baskett IV for the first time and is amazed at how well the 25-year-old blonde beauty - who he dated for over four years from 2004 - has settled into family life with the tot and her husband, American footballer Hank Baskett.
He said: "It's wonderful and I'm happy for her. I love Kendra and Hank and I love them together. Kendra has always been very dear and her heart has always been very pure.
"She was the wild child when I first met her and she wound up being the first of the bunch to get married here at the Playboy Mansion. Now she has a baby. It's the stuff that dreams are made of."
The 83-year-old media mogul also praised Kendra's family-orientated focus and insists she is a "wonderful" parent.
He told People magazine: "Her entire focus now is with Hank and little Hank. She's a wonderful mother and little Hank is in good hands.
"The baby is a winner. He's a gorgeous baby. Kendra should be very proud."
While the 'Playboy' founder is looking forward to spending more time with baby Hank, he revealed he has told Kendra he doesn't want to be called 'Grandpa'.
He added: "I'll settle for Uncle Hef!"