It's incredibly inappropriate for a manager to make sexual remarks about one of their employees.

> As a male, the mere presence of an overly sexy woman can put me in a state similar to fear: rising heart rate, mild trembling, goosebumps, inability to concentrate on whatever I was doing (talking to someone or doing work) etc.

You sound like you're speaking on behalf of all males. You don't. If that's really your reaction, you should seek counseling. Trembling and being unable to work are not really normal reactions.