I wish I would have seen this in 2011. It seems as if Rosa already posted about the herb here, but I'll still share my story in case someone missed what Rosa said.
I was a little embarrassed to share, but my girlfriend convinced me that I may help others by posting. I was having the same issue where the nipples were too sensitive to touch. If someone slightly grazed me, I would jump. They felt like it was being tickled. Sometimes even touching them myself would be too much. It was extremely frustrating during intimacy. Sometimes I would get angry with my partner. The nipples could only be touched when I was really excited or I would be turned off.
This occurred strangely in my early 20's and lasted until now 5-6 years later. I have not had any surgeries, I have not had any children and when I visit the doctor everything looks "normal". The doctors could not help me, and most people don't quite understand when you try to explain it.
I started trying different supplements and herbs, and I finally found one that works for me. I wanted to wait it out before I posted anywhere. It has been over a month of "testing" and I am back to normal I could cry. I am a real person with a real problem, so please don't think I'm advertising for a product. I tried an herb called "Vitex" or chasteberry in capsule form. It is supposed to balance out your hormones. It also brings down your menstrual cycle faster, and makes some women more fertile -- so just warning on that.
Please do your research if you decide to take the herb. Also, please consult with your doctor. I do not think anyone can give medical advice on here. I just wanted to post about what has finally worked for me after many years of frustration. I hope I help someone.