I want to tell a girl I dont want to be friends with her anymore. What's the best way to go about that? SHOULD I tell her that?

we used to be friends. one day i asked her out. she rejected me. said it would "jeopardize our friendship" or some crap like that. also that she hasn't developed feelings for anyone yet.

less than two weeks later she comes to the table im at and says to everyone that there is a senior in her college class that is a DREAMBOAT and how she wants to HAVE HIS BABIES for like 20 minutes. Right in front of me. hello.

i told her later when we were alone very very gently "hey i just wanted to let you know that its a little insensitive to be talking about a guy like that right in front of the person you rejected not only two weeks ago." she responds "... i dont think i was being inappropriate." and didn't apologize. (it was at that moment i knew i dodged a bullet)

I've basically ignored her for a month or two but she still treats me like a friend for the most part. i feel angry and sore i dont want to associate with her anymore. she's immature.

Should i tell her i want to end things? i feel like its nicer than ghosting her. if so how should i do it to get the point across?
I want to tell a girl I dont want to be friends with her anymore. What's the best way to go about that? SHOULD I tell her that?
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