Nikki Reed Dating American Idol's Paul McDonald?

Paul McDonald and Nikki Reed

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Is it a match made in showbiz heaven? Just a few months ago American Idol contestant Paul McDonald was an aspiring folk singer with one heck of a two-step. Now he's wooing Twilight's Nikki Reed.

After meeting on the red carpet at the premiere of Red Riding Hood in March, McDonald tells PEOPLE that they have "just been kind of hanging out."

Sparks were evident when they first met. "You're amazing," Reed, 22, told McDonald, 26, while shaking his hand (watch a clip below). "I'm blushing," she continued. "I should go."

How serious is their budding relationship?

McDonald says they still manage to squeeze in the time to hang out despite busy schedules. "There isn?t too much time," he says. "She's super busy and I'm super busy. [But] we'll figure it out."

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