My friend came out to me after kind of molesting me while I was asleep

Hi, I rarely come on internet and I heard that reddit is the place where people post this kind of stuff and ask people for advice. (I might be wrong and if I am, sorry but I'll write anyways.) I attend a boarding school that accepts students all around the state and in summer vacation I went to where my closest friend lived which is like 2 hour distance by bus and my girlfriend lived there so it was a perfect place to escape my family and my annoying brother. Anyways, when I went there I obviously didn't have a place to stay and my friend kindly asked if he wanted to stay at his place so I of course said yes. So that day after meeting my girlfriend we hung out since midnight and drank and smoked a bit. After that we played some video games and fell asleep watching a movie at around 3 in the morning. We shared a same bed because the house was relatively small. After a while I woke up with a weird feeling after falling asleep for a bit and I don't know why and how I woke up because it usually takes like 10 alarms to wake me up but I just woke up. When I woke up my best friend was touching my penis and I was hard. I instantly pushed his hands and him away from me, got out of bed and yelled something like "what the fuck are you doing" or something similar. He clearly was dumbfounded even though I couldn't see his face because it was dark since he just sat there for a bit. I found myself standing beside the bed, angry, waiting for some kind of explanation. I don't know what kind of explanation I wanted but I just wanted a sentence coming out of his mouth that justified the whole situation. But he didn't. After a few seconds he told me that he was sorry and said something like I'm gay and I have a crush on you. I was also flustered myself since nothing gay related has ever happened to me in my life and he was and is my best friend and we had so many connections and I always came to him when I had some troubles whether it was with grades or girls or anything. However, I got so mad at him and just got my stuff and left the house. After that happened I just went to my friend's house and stayed there for the night. After that I straight up went to my place again and didn't contact him until the end of vacation and neither did him. After the vacation on our first day of school he came up to me and asked if he could talk to me. I don't know what got over me but I told him in a cold manner that I need some space which I regret a lot. I don't live under a rock. I see a lot of gay things on TV through TV shows such as How to Get Away with Murder which I don't mind and accept, but when it happened to me it just became so weird. It's been few weeks and I still haven't talked to him and I want to. I miss him since he's a really fun guy to talk to and hang out with. Him being gay will change things a bit but I still don't want something peripheral ruining our relationship as friends. I would normally ask my sister or my other friends for this kind of advice but I don't want to risk outing him by telling other people about this. So, I'm asking the internet. I want to initiate a conversation but I don't know how. Do I just act normal like nothing happened or do I have to "have the talk" with him. I hate awkward situations and I usually take the easy way out by avoiding the situation altogether which is a bad habit. However, I can't do that since my friendship that I don't want to abandon is at stake here. What do I tell him? That I'm okay with his sexuality and nothing should change? I just don't know how to deal with this stuff. I took the time to research gay related things but I haven't got any information on how to deal with this situation. Thank you.