well she likes cuddling and obviously enjoys your company and touch. but if she wont let u escalate. my advice is to as obvious as it may seem, make her comfortable. let her take part in setting something up. for example, if she comes over to watch a movie and cuddle, tell her to light some candles while u make pop corn. if she ask why candles say, "i want some light in here so i can keep you under control" or something like that. by helping to create the romantic atmosphere she will feel more comfortable and get her in the mood. and if LMR techniques like freezing out aren't working, then its likely not just LMR. SHe regrets the hook up she called u about. to me i think she is saying she wants someone she can trust and be with not just some friend with benefits.
my last idea is reconnect with her, talk about life and other personal things, build up more rapport and a vibe, ease her into comfort then transition to suggestive language. cuddle and put ur hand on her thigh, but then remove it, have a sexual tone and body language to u, but then stop or say she's distracting u from the movie or whatever it is u should be doing. then proceed to some other LMR techniques.
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