Oh oh. I don't think birds are supposed to make nests out of their feathers! From your post, it seems that your bird is feather plucking. Birds sometimes do this out of boredom, but it can also be a sign of illness. Please elaborate on what your bird is actually doing, because from your post, this is what I understand. I'm not an expert in bird breeding, but I don't think parakeets should get babies before 1-2 years of age. If your bird is really feather picking, its time to take him to the vet. A possibility can be illness, or mites/dandruff. If it is not treated, some birds end up making themselves bald! Not a pretty site. Get him checked by the vet and hopefully if its mites, the vet will give you something to relieve him from his itching. If its an illness, the vet will know what to do, and if its boredom, maybe provide the bird with many chew toys to keep him from getting bored. I hope its nothing serious. Keep us updated!