Do I let her know my plans (moving out when, where, etc.) when asked.
Eh, you don't have to. You could be vague and say "I'm still looking for places, found a few, nothing concrete."
Oh, my advice is to check on Craigslist for month-to-month rentals or subletting.
As for the "friend" thing, I hear you loud and clear. It's amazing when your heart gets torn out that they still want to be "friends." So I am on board with everyone else here -- be friendly, not friends. There is no need to act bitter -- it does neither party any good and will make you feel worse. Act "as if."
