Just take it with a grain of salt. She will get over it soon enough.
Don’t be harsh in any way with her. It will break her heart, and she will be very embarassed. And in her later years she would still think back to being let down and think, “That was so embarrasing, I was so stupid”. Believe me, I know. This little girl reminds me of myself at that age, having a crush on a friend of my aunt’s who was about 18. He wasn’t very kind about it. I felt like a fool, and it did affect my confidence and relationships later in life.
It’s just an innocent phase that pretty much every little girl goes through. Don’t worry over it.
:eek: You let her rub your short and curlies?! :eek: You deviant! 
Anyhoo…
Two little girls at church would flirt with me (early 40s) a few years ago. They’ve both grown out of it. One would run up, hug me, & then go on her way. The other would goo & coo over me & pat me & lean up against me (DANGER WILL ROBINSON!) so I was nice & kind & careful where she leaned L
It’s a phase. My niece behaved in a similar way toward me when she was the about the same age, she liked to call me “daddy”.
Perhaps you should consider her marriage proposal. Does she happen to be a particularly wealthy eight year old?
Oh, but make sure you don’t have a cash bar at the reception. How tacky!