WHAT GIRLS SAY VS. WHAT THEY MEAN
yeah, she is flirting. The trick is to come up with a fun challenge. So you might say “ok I will” and immediately challenge her to thumb wrestling.
This shouldn’t need to be said, but she does NOT want to be physically restrained in any way. Never do that even if in fun.
Also be careful statements like shut up. They are playful and fine. But very shortly they will become a turn off. You found a playful girl. Congrats. Now up you game and start doing truly fun things like mini-golf, board games, bowling. It really doesn’t matter. The point is to spend time doing fun stuff. In other words if you haven’t asked her out you need to do it right now as in today.