What should I do about my friend?

I have this friend who seemed really nice and funny when I first met her. We became friends, but it seemed like she wasn't friends with anybody else. As we became closer I realized that she doesn't really know how to be a friend or how to act. If she's doing something annoying or creepy (yes, she's a creepy person) and I ask her to stop, she gets really mad and freaks out. She is Vietnamese and if I even say the word "Asian" around her, she freaks out and says I'm being racist. She always thinks I'm insulting her when I am clearly not, but I put up with her nonstop insults that really hurt sometimes. We've gotten into many arguments, but she always apologizes and we become friends again. These past few days I am almost done with her. But like I said, she doesn't really have any other real friends so I feel bad, but she brought it upon herself by being rude and mean to me countless times. Should I stay her friend or just not hang out with her anymore?