Dan, based upon this instance and your previous encounter with this woman, I think she is taking advantage of you.
Most women are not like this...she is the exception. As noted, unless you were foaming at the mouth, most women would take what you said as a compliment or just drop the subject.
Since she knows you have an interest in her breasts, (was that not the previous encounter; at the XMas party?) I would steer clear of them...unless they have pasties on and she is hanging on a poll at Dockside Dolls.
Since there are exceptions, you know what to do. Nothing....ever. At work.
OTOH, I have been on the receiving end of this....my boss, in Columbus 13 years ago, would stare at womens breasts while feeling himself up. He would put his hand in his pocket and fondle himself while supposedly listening to you. It was creepy, yet no one would complain.
I was alone in a room during annual inventory and he walked in, closed the door, put his leg up on a chair, stared at me and in full frontal view, grabbed his crotch and was jerking off!!!!!
I ran from the office, ran to the front of the building where security was and told my female manager. She said he always did shit like that and to ignore it...he had been doing it for years.
I filed a formal complaint with K-Mart Corp (I worked at the distribution center) and 3 weeks later I was called in by the VP of HR, my manager, the President of our facility and a security guard. I was told the incident had been investigated and they determined that Mr. Ross, the offending party, HAD JOCK ITCH!!!!!
I quit on the spot. They told me that they had him see a doctor and got a prescription.
I should have sued....I would have gotten a nice sum for pain and suffering. I got great reviews from them for years however. I tried and the system let me down. I had to quit my job over this neanderthanl. (He was a board members son-in-law; that is how he got a job)
I hope everything turns out for you....l