English consultation

Yes, you could say: "Thank you, you flatter me." or, perhaps, "Thank you, I am flattered.", which is probably the more usual way of saying it.. In England, at least, it is probably more common to simply say "Thank you", though. To say that one is 'flattered' can sometimes imply that the person praising you is giving you more credit than you deserve, so saying "You flatter me" or "I am flattered" can sometimes be taken to mean that you don't think the person is being quite truthful. It's best to use the expression with some care, especially if you don't know the person well!

I believe you can...

Yes, you can say "you flatter me" when someone praises you. Don't forget to also thank the person. Context always helps a person know if they're being praised, also body language helps a lot.