Zarby, you have a mini-psycho on your books.
Document, document, document. Individually notarise the documents. Date them. Be specific in her actions that you note, be subjective in your reactions that you note.
Other employees in the firm? Get an ally or two. Confidentially appraise them of your concerns. Record the meeting. If you are the boss, hire a gender-harrassment education provider to hold a training program for the staff. Hire them and tell them the examples that you insist they use. Use the errant woman's behaviours as the examples.
If it persists, let her carry out her intent to hug you, call the cops and insist they press charges, take out a restraint order, throw the book at her.
I just think that things have reached a sad point in society if a man has to REALLY try to inhibit, in a friendly and subtle way, a woman from sexually-harassing(??) HIM if HE doesn't want to get sued down the road.
You are right Galt. It has reached and gone well beyong that sad point. It is now dangerous.