Inside George Clooney and Amal Alamuddin's Engagement Party

May 12, 2014 -- They're in love -- and they're not afraid to show it.

George Clooney and Amal Alamuddin celebrated their engagement in Malibu on Sunday at a PDA-filled bash.

According to People magazine, Clooney, 53, and his lawyer fiancée, 36, who got engaged last month, toasted their happy news with friends Cindy Crawford and Rande Gerber and U2 rockers Bono and the Edge at Gerber's restaurant, Café Habana.

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As the group sipped tequila and wine -- and several guests sang karaoke! -- Clooney and Alamuddin cuddled and seemed thrilled to be there.

"After the toast, George and his fiancéé were all over each other," a source told the magazine. "Lots of hugging."

Alamuddin, who wore her seven-carat engagement ring to the party, left with the Oscar winner at 7 p.m., armed with gifts and flowers.