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Okay, not literally. But I had no boundaries, primarily as a result of sexual abuse at the hands of a family friend (coincidentally, a UU -- and his wife the religious education director) when I was a 12-year-old Catholic girl.
This woman will not stop after being talked to. She can't stop.
You must protect the children.
They are being scarred, in large and small ways, by a course which is supposed to help them.
Find other teachers, and get her out of there.
By the way, I don't know if the LW is a UU, but I am.