Sorry to hear about your bad expierence. Some people seem to have nothing better to do in life that to insult people and put other peoples lives down. I always try to consider the source of where its coming from. Most people cut other people down because they feel inferior to them, and by putting them down it makes them feel that are somehow a "bigger and better person".
If someone I really cared about said something insulting to me than it woud bother me. But, for someone I didn't care about or someone who obviously has no character or manners, I'd just ignore it. Of course, if it is in your house you do have the right to ask her not to touch or go near your dog. Maybe, if you know her well you could have a heart to heart with her and explain that when she does those types of things it really hurts your feelings. Believe it or not some people are actually clueless to their rudeness and blunt ways. Sometimes they need someone to point it out to them because no one else in their life ever has...
Anyway, so sorry to hear about that happening to you...
Insults never feel nice
Big hugs to you both!