Hi Thinkbait

What you're describing sounds like erotic transference, and sounds really normal! Have a read through some of the threads on here and I think you'll notice that a lot of us have felt attracted to, even obsessed by our T's.
If the hugging has triggered something for you, maybe think about stopping that for a while? So you can sort your thoughts and feelings out a bit? It's common thinking that the sexual feelings surface because we are developing an intimacy with someone, and it all gets jumbled together.
If you possibly can, it may help to talk to your T. Lots of people on here have done that, and said it helps.
I felt similar to you about my T (and also obsessed about an accidental flash of her cleavage, honestly for weeks) but it's passed now. I I don't really talk to her about it, I just said she was in my head...I don't know, it just moved on. I still think she is very attractive but I don't want anything other than the relationship we have. It can and does pass, and it is normal.
Xx