"dotknąć" [to touch] besides of literal (touch with ones finger) can mean to offend, to insult.
Yes, but you can't say "Dotykam cię" while meaning "I offend you"/"I insult you". You can use it only describing one's feelings. Same as in English "I feel touched" (emotionally affected, moved), with the only difference that in Polish we use it to describe only negative feelings - emotionally affected as in offended or insulted.
Not quite. While I agree with your samples of 1-st person singular present tense (nobody would say "Ja dotykam" in the meaning "I offend sb.") - the phrase is in past tense, which changes a bit the perspective. See:
- "Dotknąłem nauczycielkę, znaczy, jej rękę" - "I have touched the teacher, I mean, her hand" - but "Dotknąłem nauczycielkę moją wypowiedzią" - "I have offended the teacher with my statement".
- "On dotknął Pingwina" - "Pignwin" is capitalised, what suggest that this is a ninckname of a person, so it may mean both "He has offended Pingwin" and "He has touched Pingwin". Without capitalisation "On dotknął pingwina" it is rather clear that an animal could not be offended (unless in a fairy-tale), so we would understand it as a physical touch, hence "He has touched the/a penguin".