HSIN,
A couple of ideas. You could ignore her and avoid her. Since she's not there a lot of the time it probably wouldn't be that hard. Grin and bear it.
Or you could ask to speak to her one on one in a private meeting and bring up the issues.
Or you could immediately correct her when she says something rude or offensive. Maybe something like "you know it's really inappropriate and insensitive to call someone ________________."
Lastly, since she says inappropriate things all the time I am sure there are other staff members who feel the same way you do. If you trust them maybe you could all talk to her together. Then you could all band together and get her crazy stupid ass fired!
Good luck with this! Keep us posted.
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