<human>: This is how I've trained since adopting her:

I baby gated off the upstairs and basement for the cats, since they spend the most time their anyways. I fed them at the top of the basement stairs so she could see them more regularly and not have it be a big, exciting surprise every time she saw a cat.

We've been working on basic commands and potty training. She's a very quick learner and eager to please. Once she had "sit" down, I'd stand back and let her go to the gates on her own. If she started barking or jumped at them, I clapped or made a noise and told her to sit. Rewarded with treat. Preemptively told her to sit before she barked or jumped, rewarded with treat. Now, if I walk into the same room as the babygate she will sit and look at me, even if the cats are there meowing. Awesome.

The problem is when the cats come over the babygate.

If she's sitting on the couch next to me or my husband, she's cool as a cucumber. Cats can walk right by her and she doesn't flinch. Other than that, she's on a leash, so if she barks or lunges, I can stop her and tell her to sit. 

My problem is I'm not sure what to do next to get past the leash. I don't think she's trying to bite the cats. Her body language isn't aggressive, but excited and playful. But, I don't really want to find out. I'm not sure how to proceed with training here. My goal is not to leave them unsupervised together, I don't think that's realistic, but I'd like to have my animals all hang out in the living room when I'm home without tension eventually.

Can you summarize the given text in a few sentences?
<bot>: My dog is fine with my cats when on a leash or sitting next to me. How can I progress her training to allow them to share a room without restraint?