Handsy???

[steveop]

I was at a party last night thrown by some co-workers. One of the female hosts got drunk very early and was sitting in my lap, telling me that she wanted to ... well, she was beyond flirting and into the category that men usually dominate : getting "handsy". I was flattered but it became embarrassing for me and for her (our bosses were there) and I took her to a private area of the apartment, gave her a big hug and told her I thought she was sweet, pretended to go to the bathroom but instead left the party. Right thing to do?