It is clear that you know what to do because you said "I can't imagine continuing therapy with her." Also, you referred to a "psuedo-friendship." I want to assure you that you did not do anything wrong. In fact, you have been victimized by your therapist. The therapeutic relationship is intrinsically imbalanced and it is the therapist's responsibility to establish and maintain very clear professional boundaries. Your therapist has crossed over the line. I'm so sorry, but it appears that you know what to do--move on. Best wishes to you.