What's the Name of That Book??? discussion

The book closely followed a young princess and a young red headed peasant woman who had the power to see the future. The young princess also had magical abilities; the main one she pulled off was one where she would leave her physical body asleep and project her consciousness into a cat's. The whole story was told in letters, diary entries, maps, and memos. Cover was blue with a woman in a dress on it I think? Lots of Italian words used in the text; there was a circus performer character called il gatto felice? There was a lot of plot dedicated to a young queen who was being tricked into abdicating.

Wisdom's Kiss by Catherine Gilbert Murdock

Solved, thank you!