Keith and Nicole’s Sunday Rose ‘Bug’-ging Mom and Dad

Keith Urban and Nicole Kidman's 16-month-old Sunday Rose is into the curious phase and is using her new words quite often, according to Nicole. The actress tells PEOPLE her favorite new thing Sunday has learned is the word 'bug,' which she apparently uses for everything!

"She now points at anything and says 'bug.' That's her word," notes Nicole. "We were in the hotel room the other day and there was a little sprinkler up in the corner of the room. She kept pointing at it and going 'bug!' Keith had to hold her up and prove to her that it wasn't a bug."

Nicole also reveals she and Keith have developed quite a coffee habit -- sort of. "Keith and I love coffee. I love the foam more than the coffee. I will go and order a cappuccino and say, 'make it all foam and very little coffee.' They know me now at the Starbucks in Nashville."

The family plans to spend the holidays Down Under as Keith embarks on the Australian leg of his tour Dec. 12. He tells PEOPLE he's looking forward to an Aussie Christmas with both families. "We'll be able to spend it with all of our extended family on Nic's side and my side, so we're really looking forward to that. My sister-in-law on Nic's side has four children and my brother has two, so there will be lots of kids running around."

And lots of "bugs," no doubt!