Although I do think that the hugs should have been discussed and may not have been advisable, when in the midst of erotic transference just about anything can result in the same sort of reactions you mentioned. Even a completely innocent smile, clothing choice, gesture....anything on the T's part really, can feed into the feelings and the fantasy. T's do definitely need to be careful regarding touch and all but it might be that you would have had these feelings anyway. I am not sure if you want to try to salvage the relationship with this T or not but perhaps she is still willing to work with you to resolve this issue, if you aren't still in the mindset that she either needs to run off with you or you will tell her off. I don't really know.