I would be concerned because you told him about the attraction and he continues to hug an do things that could be seen as sexual.

As far as coffee during a session I don't really see that as a problem. I wouldn't do it as I would fear showing emotion in public. However, my first therapist did go for walks and such with clients if it helped make the client more comfortable. A couple of years ago my son saw a therapist who would pick him up at school and take him for an ice cream or "snack" at Mcdonalds.