I'd say she should cut ALL contact with him. I think her best friend should know...how to do it, I am not sure. Maybe talk about it in the same room with the two of them.
Maybe she could talk to her friend first...and then they decide to gently confront him, with your friend saying she will not talk to him any more.
He may get all flustered and say he was just joking...but at least the boundaries will be drawn when he sees that no one is laughing at his "joke".
You'll get other views on this...hopefully your friend and her best friend know each other well enough that your friend would not be blamed.
Good luck!
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