I'm 27 and have never had a real relationship. I found a girl but she gives mixed signals.?

Ive been seeing her for about 4 months now. going on dates, hanging out with her and her kids. She was always telling me how we were just alike, how I say what she's thinking, how she thinks blonde guys are hot. (I'm Blonde) and how about how she loves me being around her kids because they love me. I asked her if we could start a real relationship and she said no. That she was afraid she would screw up a relationship and that we should just be friends. She still wants to hang out with me but Im afraid that Ill either be lying to her about my true feelings if I agree to just be friends, or I will make myself miserable by constantly being around someone I love who I know doesn't love me. Should I give it time? should I confront her now? Is it possible that she will feel differently down the road? Im too old to be lying in bed all day, not eating and moping over a girl.