Great news from UMHoops. Quote from a Hatch family spokesman:
Austin Hatch has been conditionally released by his medical team to begin practicing with the Canterbury High School basketball program. The first official practice is today, however, Austin is limited to the types of drills he can participate in at this time. Although everyone is encouraged by the progress he continues to make, Austin and his family ask that you do not approach him for interviews at this time.
Some further info from Baumgardner:
To piggyback off @UMhoops report, Hatch family spokesman says it's still not determined whether Austin will play HS bball this season.
Hatch family and folks at Canterbury are still taking it day by day, but say Austin is making great progress.
Baumgardner followed up with this article: Michigan recruit Austin Hatch cleared to practice, still unsure if he'll play prep hoops this season
The family spokesman said Hatch would be participating in "about half" of his teams drills Monday, which is the first day Indiana high school basketball teams are able to practice.
It's still unclear if Hatch will play this season for Canterbury.
"We're taking each day as it comes," the spokesman said. "He's making great progress, but we're not looking any further than today."
UPDATE: Below is a WANE-TV video with clips of Austin Hatch practicing with his team yesterday, plus an interview with his high school coach, taken from this page: Hatch, Cavs Return To Practice Floor
He looks good in the video, especially considering all he's been through.
There's also a second video on the page, with a longer interview with the coach (with his team practicing in the background) in which he talks a bit more about Hatch, starting around the 2:48 mark.