Should I cut off my friend?

My Asian friend had laughed at racist slave jokes despite me saying I find It offensive and told her it was not funny and said the word n*****casually in conversation. Her argument is that she would never call me a n***** but between friends she should be allowed to say it casually?

I would never seek to make friends with someone who seems racial slurs and racist jokes to be funny; this literally came out of nowhere. Spoke to her about it and she said that she feels as if she should be able to say it to me because we are close.

She apologised for upsetting me but still believes I am being too sensitive and that she can say it. We had three telephone conversations about it and she still does not understand. I have been friends with her since 2013 we have never had such issues until recently. Personally I find it outrageous that she’s upset me with me in any way. she wants us to move on and agree to disagree.

But as a black person, I do not feel comfortable knowing that she thinks it’s okay. My other friend said that she is gaslighting me. Please specify your race and let me know your honest thoughts on whether you would cut her off. Thanks in advance! (I’m leaning towards cutting her off)
Should I cut off my friend?
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