Confused? Doesn't sound like it.
You seem to have handled it well. You're attracted and she's of the right orientation. If I gave advice, it would be to explore that relationship with her first, or else it may only be just a "sex thing", and probably not the best kind of sex. If I were in your shoes, I'd be up front and ask her if she'd consider becoming romantically involved with me on a non-exclusive basis. If she says no, I'd thank her for her honesty and tell her how much I value our friendship. Then I'd tell her it was an open invitation. A good friend won't let sexual tension ruin a friendship. Best to let it out into the open, even if it's not going to go anywhere. Good luck in your endeavors. I hope it works out.