It really depends on the friendship. Personally I'm a big fan of supporting platonic intimacy. However, that needs really clear boundaries and that sounds like that might not be what's happening here, especially with the "let's see where it goes" part. I think you're right to be confused and, seemingly, a little wary of this newfound physical affection.

It sounds like y'all both may be a bit confused by what you want. I suggest having a clear talk about boundaries in which you both state how you feel and what you want/need from this friendship. Some people think you don't need to talk things out in a friendship like you do in a romantic relationship, but friendships are still relationships, and all relationships require clear communication. I know it might be scary to put yourself out there but I think if y'all can resolve this your friendship will be much more enjoyable with much clearer boundaries.

Good luck and PM me if you need anything.