Good to see you are progressing with your piecing. I too feel for you and the physical intimacy. In my situation it seems like I have to dig out of a hole and then progress to the physical aspect of the relationship instead of starting at square one.
Keep staying patient and in time it should come. My W and I are currently piecing too. We have been kissing, hugging, cuddling and even ML twice over the last month. But unlike your situation, we do not live together. I spend the nights there different times during the week and we spent a long weekend together out of town as a family, but don't currently cohabitate.
The physical should come around for you with continued piecing efforts. I notice my W getting more and more comfortable with me as our piecing progresses.
I am happy for you and your W that you are piecing.
M:34 XW:34 Together: 10y Living: 9y Married: 7y Son:6 Son:4 Separated: 12/28/13 Piecing: 5/2/14 Separated 2nd: 10/16/14 W filed, but pulled it: 11/5/14 papers served: 1/27/15 D final: 3/6/15