Does kagome's friends ever find out about inuyasha being half demon?

I don't think they do. They basically think that he is an albino gang member with a bad attitude and zero tolerance. They do see his dog ears at the school festival, but they think its just another costume. Kagome goes a little over bored trying to hide it, but it doesn't really make a difference in the end. Her friends just never notice, and if they did, they don't ask.