ET has confirmed that Dame Elizabeth Taylor is continuing her amazing recovery after being hospitalized last month -- and is happy, healthy and busy working.

The 76-year-old actress was rumored to be ill and on life support, but a source tells People magazine that Elizabeth's been back to work overseeing the holiday packaging for her White Diamonds perfume.

"Ms. Taylor is at home and happy – and busier than ever," a friend of Taylor's said. "She's living her life. She's been having dinner with friends. She's working."

Taylor is reportedly feeling well enough to plan upcoming trips to Hawaii and Europe.