Would I have a malpractice case

No, look for a new doctor that will help you.

Consult a workers compensation attorney as soon as possible.

How do I go about holding work responsible for injuries and doctor responsible for a wrong diagnosis?

Consult a workers compensation attorney as soon as possible.

Should I proceed with this legally or let it go?

Let it go. There is no injury and no case here. It was a bad experience that thankfully was limited to the moment.

What is the most effective way and how much should i sue her for ?

Turn it over to your insurance. You can file a claim against her when you know what your total damages are.

What can do for compensation and how can I go about handling this problem.

Consult a med mal attorney in your area.

Is a malpractice suit possible?

Consult an attorney with all of the records you have as soon as possible.

Does this woman have a case against me for libel? I am confused on what is fact vs. opinion.

I do not think she has a good case against you but consult with an attorney if she files one. I doubt she will.

What can I do about this because I don't remember signing any papers stating it was ok for him to work on me

Consult a medical malpractice attorney. They will want to review the records.

Can they do anything against me?

How much damage? If it is significant than turn it over to insurance.