I know the book "Notes on Racial Phylogeny" says pretty much that we don't know if Khajiit and Nords can have kids together. Is there any other source that says anything more conclusive? I have looked online and have not found anything, so I was hoping some of the lore buffs here might have an answer for me.

No.

I imagine that if it was a Khajiit mother, the child would just be one of the very human-looking varieties of Khajiit, while if human mother, the result would be closer to a Wood Elf.

There is already a form of Khajiit called Ohmes-Raht who are basically humans with tails and fur. The Ohmes look like Bosmer, according to: http://www.imperial-library.info/content/khajiit-physiology-phases-and-forms (I can't be bothered putting in a neater link)

The closest thing I can think of is Katisha mentioning to Barenziah that if she keeps "keeping company with" Khajiit, she'll find herself pregnant.

Still nothing close to substantial though.

Even if possible the child will probably just look like the mother, and if the mother is a Khajiit then the cycle of the moon will decide how the child will look.

That's my understanding as well. Progeny look like their mothers, not a combination of the parents. The notable difference is the Bretons who are a blended race (Elf and Human), but this union probably took centuries if not millenia.

Well, if the Khajiit are truely just another form of elves...then there should be no issue.

Thank you for your replies. They're thought-provoking. Also, what is the source for saying that the children will look like their mothers only? I remember Notes on Racial Phylogeny saying something along the lines of "the offspring usually resemble their mothers more than their fathers" (can't remember exact quote), but there are a lot of people I've seen, on this forum and other places, who say that the offspring are ONLY the mother's race regardless of any other factors.

That book you mentioned. It states they generally take the race of their mother with a few minor of the fathers traits but for game purposes the race of the child is always dictated by the mother.

http://oyster.ignimgs.com/wordpress/www.ign.com/9109/2011/08/Khajiit_Arena.jpg & http://oyster.ignimgs.com/wordpress/www.ign.com/9109/2011/08/Khajiit_Daggerfall.jpg

Here's a nice little thing with Khajiit on Tamriel Rebuilt, check it out they have concept art of all the different cycles of Khajiit.
It is~ suspected that Khajiit are descended from Bosmer because the Ohmes look so similar to one.. But no one will talk about any sort of connection, and rightly so, Khajiit are the Bosmer's favourite food. And who wants to really be linked to the people who eat you.
But the creation of Khajiit, as far as I know, is only speculation.

And I personally thinking trying to inter breed with something with such a complex race- what with the moon thing -isn't going to work. And if it does.. If it's not an Ohmes it is going to be one messed up kid.

its hard to say, I read somewhere that the khajiit inhabited Tamriel before the elfs. and where driven south.

and wizard, aren't bosmer cannibals anyway? so wouldn't they be eating all races lol

Oh my yes, the Bosmer are Cannibals.
But~ I do remember Jobasha getting defensive in the Interview with Book Merchants when the similarities between Ohmes and Bosmers were mentioned. And I like to imagine it's because they are eaten by the Bosmer.

I herd that the Ohmes are usually mistaken as bosmer.

People usually don't make that mistake twice.

^^ what do you mean?

I also like that they tattoo there faces ( sort of like my people in real life ) tho, the Ohme's but i prefer playing as a catman myself.

Let's just say that the Ohms HATE being mistaken for bosmer. (Could have something to do with Pelinal's war against the mer). Tis why they give themselves feline tattoos.