Ah I remember Lydia the elders daughter. She was 18, I was 23. There we were not having sex for our three year relationship... we were so frustrated we resorted to her dry humping me whenever the chaperone wasnt around.
Wonder where she is now?
Look, this whole "no sex before marriage" thing is bad enough, but being constantly watched and snapped at for a lingering hug is just unhealthy.
Get out! Get out now and just do whatever comes natural to the both of you.