OP,
People who abuse others and get called out on it, often use the "you're too sensitive" line.
It translates into "I expect to be able to treat you like shit, you take it all the time, without complaint, and if you dare to challenge me, I will turn it all back on you, and call you sensitive".....AKA bullshit.
She does not get to treat you badly and get away with it.
Now, you step back.
You have told her you are not happy with how she behaves towards you, and she has told you deal with it.
Step away and take space.
If she asks why, tell her I told you I am not happy with the way you behave, you are blaming me, so I will give you lots of space.
Never accept being a punching bag for another person.
She needs to deal with her shit, without taking it out on you.
Stand your ground, because if you don't,either way your relationship is doomed.