one thing i learned is never tell a girl how you feel
it is portrayed as a turn-off.
she is either becoming touchy because :
A
her friend showing interest in you is annoying her because she secretly likes you B
you aren't playing along with her game,shes wants to string you along,control you,do not fall into her trap.you also said you started to initiate kino,touching her,giving her massages: if you wanna be adventurous
deny her a massage, make her give you one,a small bit of compensation for all the times you gave her one.
you have been friendzoned,mate but there is a possible way,just start denying her cuddles and other stuff.
i would also distance yourself from her,if you really want her,Play her start flirting with other women in front of her,see a large chested women: whistle at her or admire her huge tits.if a slighty uglier woman is walking down the street say how pretty the ugly woman compared to her.
she will definitely get pissed off if you aren't playing her game.
if she tries to counter it by going off and flirting with other guys,
fuck her,plenty more girls in the land and in the world. 
hope this helps