Was this a date or a friendly hangout and should I pursue?

My uncle and his wife (my aunt) occasionally bring my (30M) aunt's niece (23F let's call her Sher) to family meetups. We barely met 8 times but the times we do meet, we are either very playful to each other or we barely say a word at all.

Well this Christmas we met again. The first day, we locked eyes a few times but barely spoke each other. The second day, it was the opposite. I was playing rough with my little niece (7) on my lap when all of a sudden Sher looked at me and said "now it's my turn' and actually came over and sat on my lap. But it was the way she said and did it.. and that continued.

Afterwards I noticed she had send me a picture of her on my lap. We chatted a bit and at one point she asked if there was anything to do in the area. Her replies gave me the impression she wanted to meet. However I was not able at the time but told her we could meet up another day. She gave it a heart reply but the conversation pretty much ended there.

The next day I told her about a great view we could go to. She asked me who "we" was so I told her, her and I. She said yes and that she would pick me up instead of meeting there. Unfortunately, the weather was misty so the view was ruined. Instead, we just wandered around the forest. I thought she wasn't enjoying it because it was all just mud and mist but she said she was having a good time and we ended up walking for 2 hours. Afterwards we even went to a restaurant I suggested. However, even though she was very flirty before, this entire day she was more calm. The vibe kept changing between close friends and a first date with a stranger. Nothing further actually happened though.

If this was any other girl, I would pursue. But since she is technically family I find the situation difficult. I don't know her outside of family meetings and I find it difficult to tell whether she is a flirtatious person or that she is interested in me. To my other family members, she is very calm and silent. What is your opinion?

Was this a date or a friendly hangout and should I pursue?
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