The way you described the lady. No nothing wrong with it.

If that's the actual phrasing he used, I think it was pretty weird. Not necessarily offensive, just weirdly specific in a strangely technical way. Something like "the small Asian lady" would get the point across while sounding less like you're some kind of robot or alien trying to classify her as a research specimen.

And the bit about either being from an Asian country or having Asian parents is kind of weird, for all OP knows her family might have been in the country for generations. People have a tendency to view people of Asian descent as a sort of perpetual foreigner, and that phrasing kind of feels like it's playing into that.

"East Asian" also feels needlessly specific. How likely is it that there's other women who otherwise fit the exact same description but are of, say, southeast Asian descent that OP needs to differentiate her from? I also think it's probably the kind of distinction a lot of people just won't understand. At least in the US I know I've had to explain what I'm talking about when I've talked about southeast Asia for example, a lot of people just don't think that much about geography, let alone know about the cultures and physical characteristics of people from different regions.

It just all feels like a weird way to describe someone. Personally, I wouldn't take it as rude, but it would definitely make me think that the person saying it is pretty odd and socially awkward.