She was feral now very domesticated but I worry...

Teddy had 7 adorable kittens! She was a kitten someone dumped on a local farm at 6weeks of age and the farmer was so mad he wanted to drown them all as soon as he could catch them. I spent 8 hours in a damp old milking barn chasing her and her sister before capturing them and hauling them home where I confined them to my bedroom for 3 months.It was pure nightmare trying to get them used to me but in the end it was all worth it! I gave Teddy's sister to a friend and kept Teddy.She lived in the house and was afraid to go out until one night we had kids running in and out and she escaped to return pregnant....I am worried about her kittens will they be scared of people or will they have the benefit of being in the house and around me making them more friendly? Teddy is very calm and used to people now she is not shy at all I am hoping her kittens will be friendly as well.

They will be tame if you handle them gently every day, like any kittens. They don't have any memory of their mother was raised; they only know how they're raised. If she is currently friendly she will teach them to be friendly, and the rest is up to you to teach them that humans can be trusted.

Keep in mind that cats can get pregnant again very soon after giving birth, so keep her inside until she's spayed. It would be best to have her spayed as soon as the babies are weaned.

I agree. Get her spayed as soon as she has weaned her kittens. You may want to spay /neuter the kittens when they turn 4 months. If you have the chance to adopt them out earlier, you can talk with your vet to spay/neuter them when they weigh more than 2lb.

If she can raise her kittens in your house and you interact and play  with them, they will become highly adoptable friendly kittens.

I agree. Cats live in the moment. Kittens you (and the mother cat) raise from birth will have no preconceived notion about humans.
Also agree that the mother cat should be spayed as soon as the kittens are weaned, and the kittens as soon as they weigh two pounds (in my experience, the proper weight is more important than age).
And, thank you for rescuing Teddy.