When she mentions dating again and she may very well do that, you tell her that you will be dating, you just don't think it will be with her ;-)
I like this...I hope it happens again so you can say it. Actually, I'd probably add, "I will be dating, but I don't think it will be you. I'm looking for someone who is interested in more of a long-term commitment". :P
I'm glad you clarified that it wasn't that you couldn't hug, that you wouldn't hug. Keep working towards being stronger and getting out of the Mr Nice Guy mold.
You cannot be lonely if you like the person you're alone with. Dr. Wayne Dyer