She's finally lost it. That's the only conclusion she can draw from this. Because she has most definitely always had breasts, well from being about about thirteen at least. Why is she suddenly now questioning their existence, or being so concerned that she'd touched them?

Also she's appears to be talking to herself, in a weird kind of I didn't just ask my own name type way. Oh well, she asked a question of herself, might as well answer.

"Yes Vala that's finally it. You've gone completely wonko. Well it was bound to happen sooner or later, I suppose."