Yikes. Denial. There's a curve ball. Excellent quick work getting other students to commit that they heard the same thing. OF COURSE you cried afterward. I would too. And I don't have PTSD. Perfectly normal and healthy response. And playing it over and over. Again, I'm with you. Decidedly uncomfortable, but.... You might try just writing it down, sometimes it works to get stuff out of my head. Well Done going to talk to her, and following up appropriately after:tup:
Brat is completely right. What do you want from the dean? A note in her file? A censure? To be honest, if she has tenure there is not much anyone can do other than send her a strongly worded email. Assuming this is a pattern of behavior tho, the dean etc will need a PILE of such notes from lots of students in her file in order to address it.
More importantly: What do you want for you? Are you comfortable in that class anymore? Do you want to finish it with her? Or would you rather get a "redo" at the school's expense? You could late withdraw and enroll in another section - or late transfer sections - or do the rest of the course independent study with another prof. You have lots of options here, and all things are possible at universities.... given the right form with the right signatures.
Hang in there, you're doing great! More brave and assertive than most people, to be perfectly honest.