How would you deal with this?

So we had friends over. Their daughter (5) is their little princess.. which is fine, not my kid I think it's sometimes a bit cringe worthy but honestly it's rarely my problem.

This weekend it was.

When their kid decided that she wasn't going to eat dinner with everyone. We ate pizza, the kid said she doesn't eat pizza, I suggested an alternative which I was willing to prepare. I cooked her pasta the day before, when we had spaghetti, she doesn't eat any sauce or meat or toppings or vegetables with her pasta so she had pasta. So I suggested I'd make her that again. Both her and her mother said that wouldn't be necessary, she'd be having miniature sugared pancakes for dinner. They had brought them and they weren't much work so she had that. My kid (2) hasn't ever had that and he was fine when she had her pancakes. He was just eating our food as usual, he eats everything.

When she was done with her portion of pancakes she wanted more. Even though there were still plenty pancakes, she didn't want those anymore, so her mother offered her a sugared waffle. My kid does know that and obviously didn't understand the situation. Pushed off his pizza and started a tantrum when he realized that he wasn't getting a waffle. By the time her waffle was (near) done, my kid had calmed down and wanted his pizza. My husband specifically said that she shouldn't be eating candy during dinner when our kid is still eating because he's still having his food and is getting distracted. I mean this kid is having candy right in front of his face, how else is any 2yo going to react... The girl's mother apologized for the situation, then proceeded to give her daughter, again right in front of our kid, cookies with chocolate topping. My kid obviously couldn't place it and he pushed his dinner away once again combined with a huge tantrum. We decided dinner time was over before pizza would come flying through the living room and let him have his tantrum. We do not have cookies in the house and the family never offered any to our kid anyways but even though I totally understand where he was coming from, I also didn't want to reward pushing away his dinner and having a tantrum by giving him cookies..

I feel uneasy about it, because I don't want to have to make decisions in behalf of their kid or parenting, it's not my kid and not my business. However it does kind of becomes my business when they are in my home and it affects my kid.. My partner however doesn't feel as torn. He's absolutely upset that after apologizing she proceeded with providing her kid with more candy in front of our kid who was still having dinner (trying to have dinner).

@Lolloh

I have never seen the parents try and have her eat any dinner. Mom would specifically add "kids food" to every meal without asked. I would understand if she did that if she had guests or coming over if dinner is a task and to avoid drama. But she asked me half a year ago which alternatives I give to my kid when we eat sushi or scampi or mushrooms or steak.. I told her I don't provide alternatives. She said she'd never think about doing that, kids are just different than adults. Which is her perspective and I don't need to change that. I personally feel like - and I told her that- kids need to learn different tastes and smells and textures and consistencies when they are young. But considering what mom told me, I don't think they encourage her to eat varied or healthy. The kid eats what she wants to eat and the parents are especially happy if it's healthy-ish.

@J

If you think my kid eating everything we eat, including sushi, seafood, etc, is extreme, I might understand. However I do feel quite strongly about him finishing his dinner before getting sweets and I think that is a very normal request. Definitely if we're eating just pizza. It's not that he doesn't eat candy or sweets, just definitely not as a replacement for dinner. We just at that moment didn't have any in our house.