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The problem becomes this... we know eachothers play so well... we would end up calling eachother down on the river with middle pair, A high, ect... and other players feel we are cheating and/or much better player than we actually are.

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This will probably make you look worse, not better, to the average donk.

Would you play this way against other solid players? This appears to be your reasoning. If I sit down at a table with a solid regular, with whom I've played many times and know her play very well, I will still play my best against her. Yes, I would rather avoid her than play many pots against her, but this is because I want to avoid difficult and/or marginal decisions, if possible.

In the future, bust him for all his money. He is clearly attempting to do the same with you.

Mind you, I can actually spot a reason for softplaying a friend. If she is the one who drove you to the room, and will leave when she busts, it would be against your interest for her to go bust. This is assuming that the game is good and you are playing well. I would rather give up a few bets on one hand than take a cab home (more expensive for me). Given the right game conditions, it is possible that softplaying your friend is +EV overall.