How do you discipline your child?

Few days ago, my hubby and I met up with our couple friends who has an infant. We were eating at a Hawker Center and Simone was in her pram. She managed to reach and touch the satay on the table and my girl friend firmly grabbed her hand and said, "No! No! No!" Thus refused to let go of Simone's hand. Of course my daughter felt scared and she cried so hard, thought she was being scolded by some stranger (*grunts*) I picked her up and walked her. When we returned to our table, Simone was still a bit wailing when she saw my girl friend, and the latter said , "No..no... Don't cry!" in a stern voice with matching pointing of her finger. Uhm, do you think she will still be happy to see you..? She was just curious about the satay:) No harm intended right? Why scold?

Well, i just kept quiet the whole time because mainly:
1.She will not understand it yet if i explain to her
2. She might get offended.
3. We are not that close.
4. I just might say something I might regret. 

I told myself if there will be a third time then that's it. Am I being too protective? Well first of all I don't even do that to her! Why would some other person? Disciplining a child is not about scolding nor spanking them not even scaring them! I'm just so upset deep inside. 

Ranting,
shiela