Crushes develop all the time. It's an occupational hazard of being a dance instructor. You are probably not the only student with a crush that she dances with in a day. Remembering that can help you keep a crush under control. She's special to you because she's your only dance teacher, but you are one of 20 or more students she deals with every week. She probably compliments them all, in one way or another.
Crushes tend to develop early in the learning process and, if you ignore them and go about your life including meeting and dating other women, they go away. That's what I would recommend you do. When you are in a lesson, focus on your dancing. That's what you're paying for.
Don't read too much into your instructor's compliments to you. Dance instructors have to be salespeople, too (more or less, depending on the studio they work at, but it's always some part of the job). I certainly have heard of female instructors flirting with their students and encouraging crushes as a way to generate business. I'm not saying that your instructor is doing that, but if she wants to keep her students, she has to make them feel good in some way.
Sorry to be so blunt, but I've seen too many unhappy situations and people leaving dancing because of crushes gone bad.