This would irritate me greatly. She is sexualizing your bodies with this remark, and if that had never been an issue before it'd catch me on the back foot and make me really annoyed. Bodies are bodies. We are all capable of touch and hugs and whatever without it being a sex thing.

I think she was quite insensitive with the boob-graze remark, does she have form for this kind of thing or was it out of character? From what you say above though I find it quite odd that your T is into physical touch at all. I think it sounds like she has unresolved issues herself around the whole area of different kinds of touch.