How can one deal with a friend who exaggerates in showing appreciation and respect without hurting her feelings or ending the friendship?

Extremism is blameworthy in all things, including extremism in attachment to individuals and in exaggerating their praise. The Prophet, peace and blessings be upon him, forbade excessive praise because it destroys the one being praised, and he encouraged moderation in praise. The sister should be gently advised and enlightened with the etiquette of Islamic law, and that true love is that which leads to supplication, not to flattery. If the praiser insists on exaggeration, the praised person should shut this door by throwing dust in the praiser's face and supplicating: "O Allah, do not hold me accountable for what they say, and forgive me for what they do not know."