I know this has been gone over and OVER but I'm still not clear and I'm in a dilemma here

UK buyer made a purchase through the GSP. She paid. She then sends me a ton of messages stating she A.) wants to cancel due to she thinks there will be more import fees. B.) she needs to cancel because there is a problem with her PayPal acc./credit card.

I message her back, tell her she's already paid so the payment went through, and that she paid through GSP so there will be no more import fees.

She message me back and says please cancel the sale and refund my payment. So I message her, say 'no problem, I will send you a cancellation request and refund your money'.
As soon as I clicked the send button, I thought Oh God, I forgot about the DEFECT.

So now, how do I refund her in full without getting a defect? Also I can't find the link to send a cancellation request. I went to the awaiting shipment page, and clicked on the right side of the screen where normally this button would be, and it's not there.

Will this give me a defect if I cancel? I pretty much have to follow through now regardless, since I told her I would do it. But I don't want to worry needlessly.Here's the way I am doing them.

1) I let the buyer know that I need to send the cancel first, and that the refund should show within minutes of the cancel in their email box, once the refund shows please go ahead and accept the cancel. (Usually in the response to their request to cancel, and I will be doing it in their resquests to return if I get any returns (I rarely do))

2) In the cancel I tell the buyer why I am sending the cancel, (you requested the refund because you no longer want the item and have changed your mind) after I have chosen "buyer changed mind" (most of mine happen before the item is sent)

3) As soon as I hit send on the cancel request I go to the paypal tab I already have open and do the refund. (I'm aiming for seconds between the emails with the goal of being within minutes of each other)

In some cases (ok most cases) the refund hits before eBay sends the cancel email... so the order they get in their box is usually refund then cancel request...  PayPal's emails go faster than eBay's do, but in the system eBay can see the cancel came before the refund.