toads

ok, here is my problem:

My friend Mike is kinda intamite with this girl, they have had sex, but are not dateing. She likes him, hes a sweet guy and whatever, but he is "to nice" she says she wants a more "cocky" guy, someone who when other people see her are like "why is she with that asshole" someone more like me...

so last night the 3 of us hung out in my room for 3 hrs. which involved her demanding a full body massage and her trying on my cloths in front of us. she accused us both of being teases as well. She knows how i feel about her, and she feels the same way, the only problem is mike...neither of us wana hurt his feelings... what the hell should i do...