Is there a way to add the list of recent posts into the admin sub menu on hover?

Yes you can. By hooking into the admin_menu hook you can add sub menu pages, and they will appear
on hover by default. All you have to do is iterate the recent posts and add them one by one.

add_action('admin_menu', function () {
    $args = array(
        'post_type' => 'post',
        'post_status' => 'publish',
        'orderby' => 'post_date',
        'sort_column' => 'post_date',
        'sort_order' => 'asc',
        'posts_per_page' => 10,
    );
    $arr = get_posts($args);
    foreach ($arr as $item) {
        add_submenu_page(
            'edit.php',
            $item->post_name,
            '• ' . $item->post_title,
            'read',
            'post.php?post=" . $item->ID . "&action=edit',
            ''
        );
    }
});

Update:
I wrote a plugin for this. It also shows pages and custom post types. Hope that helps.