SUBREDDIT: r/dating_advice
TITLE: Is it F[19]ine to keep going on dates with hiM[19] even though I'm not attracted to him?
POST: Sorry about the wall of text!
It's been a week since I first spent time with this guy I know at school. The first time we hung out, it was very spur-of-the-moment. Since I am in a major with not too many girls, I thought of it as nothing different than hanging out with any other guy friend. 

A couple messages and a few days later, I realized he might like me. After our plans to go out with a group fell through, our first "date" was spent watching funny, silly movies in his dorm room. He got a little touchy-feely - holding hands, leaning against me, hugging me occasionally when we talked. Fast forward to the end of the date: he told me he liked me and I told him I did too, but I needed to take things slow. He tried to kiss me, but I turned away and we hugged awkwardly. We talked normally after that and he dropped me home. 

He's a great guy: he's smart, funny, nice, quite a talented musician, caring too. But I came home and realized that I'm not physically attracted to him. I really think we could be good friends though because we share so many similar interests. 

I feel like I led him on and I'm a terrible person for doing that. I asked him if he wanted to hang out tomorrow because I wanted to clear things up with him. But talking this through with a couple of friends has confused me utterly. 

Should I continue to hang out with him and see where things go, even though I feel no physical attraction towards him? Or, should I just let him know where I stand, and what's the best way to do this without hurting him?
TL;DR: 
How should I deal with a guy I'm not physically attracted to, but really like as a person? If I do let him know that I don't like him sexually, how can I put it gently?