sheepgirl, I have 2 dcs, took one year off each time. The hardest adjustment was going back to work after my first one - the childcare arrangements, settling dd in, applying for flexible working.
Once I was back in the work saddle, I heaved a huge sigh of relief and never looked back.
My baby, unlike yours, was a high maintenance, non-sleeping baby with initial health problems. I really really bonded with her, being so long at home with her, day-and-night, 24 hours a day. I did not want to leave her. Yes, she is more important to me than work.
But every day I thank my stars I took that big step to go back to work, at the end of my maternity leave. Now I have the best of both worlds, children happily stimulated in a nursery, a life outside of children, money coming in, with independence and financial freedom that brings, financial security and a lovely home.
I would say, so long as your baby is happy, then keep that foot in the job market. Save as much money as you can, pay off that mortgage. You might find that your baby-turned-schoolage child needs you more when they are older. You have the flexibility then to downscale on the work front.
It is a long term game. Don't use all your cards at once. Your baby will still thrive. Obviously, if he/she does not, you can revisit it.