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The problem was that during all this time we were doing this she kept pushing me away. For example we would go about 3 weeks at a time with no problems and then shed say "we have to stop seeing each other" out of the blue. Then shed call me 2 days later and wed be back at it again for another 3 weeks and then repeat the whole process over again.
why didnt you come for advise when things were better. Anyways, so she is not willing to accept that she is 'ready' for dating. Probably she is just 'one guy at one time, monogamous' type of girl. But she WANTED YOU. She was into you. Hence everytime she would push you when you didnt act needy she came back. You should have been the way you were earlier "Ok babs, we'd be friends' and yet continuing dating and hooking up. For her the word dating and accepting it only when her BF has been dead recently does not go well with her.
So now, what do you do. I'd say do nothing. And after 2 weeks if you dont hear back from her I would say leave her a quick message saying something like "Name, I think you are too good of a friend to let go on such a small issue, I think I too would like to continue being friends with you even if we NEVER date'. This is make her comfortable with having you in her life but yet not a BF per say. I know a lot of guys would say that you would get into the LJBF zone. But not when you are sexually escalating.
Her emotions and mind are at two different places now. Emotions with you and mind refuses to accept you as a BF. Hence keep it cool. If she doesnt respond back to your message then MOVE ON.