its possible
Dude
I think its possible.
In fact I am in the same boat as you are and I have in fact applied for my H1 in the 20000 quota because I have a Masters degree just like you do.
Now, I am waiting for the response on my H1B petition. So its perfectly ok to move from CPT to H1B, i had also consulted my lawyer about this issue.
so chill out.
-P