MayHug, wow, that co-worker was rude.
I had a similar story, but not as bad as yours. A male co-worker left our job and got a sales position in another company. One day people were discussing how great the new job sounds and I wistfully said it sounded great, maybe I should try something like that (even though I know I'm not cut out for sales). Co worker said, "but Jim (the ex co-worker) is good looking and charming". The implication was I am not. I just sat there in stunned silence. She did give an awkward apology while giggling, but has also made other little similar jabs about my appearance over the years, albeit infrequently. I've never had a good comeback. Glad I have a DH who does not share her opinion in the least, although the jabs do take the wind out of my sails when it happens.
I'm afraid of saying the wrong thing after being insulted and stunned, and also that the situation will go away. Even though I wasn't the one making the rude comment, I still feel embarrassed when they are directed at me (there were always other people present) and just want people to change the topic instead of focusing on it.