I am fine with what you did on the first hand. In hindsight sure you could have gotten a ton of value, but the way you describe her, she could have easily been playing suited connectors as well. The straight or flush (or straight flush) threat was one you had to respect.
I think your snap call on the second hand was the mistake.
Sure she was on Tilt, but this is a player you are clearly better than, you do not need to try to take her on a coin flip with you 7's. I think in this case you should protect the chips you just earned and over time you will outplay her anyways and get her chips.