I've read a lot about the introduction process and we're doing this properly however it's scaring me to hell.
Lily obviously smelled the other bengal, who is also a female. She began hissing and growling (something I've never seen her do before) and getting all territorial. I expected this. What I did not expect was her to hiss and growl at me when I went to fuss her afterwards.

It really hurt to be honest, as stupid as that sounds.
I'm now pretty scared she hates me. She won't come near me and will play but barely. Is this normal behaviour when introducing a new bengal?

Anything else I can do here?
The new bengal is called Orchid and is a little older than Lily.

I would say this is normal behavior for all cats in general. A friend of mine has 3 domestics (2 female and 1 male) and a couple weeks ago we found a 1 year old female outside crying in the corner of his apartment building and shivering from being so cold... brought her in and immediately his male started acting exactly the way your saying your female is.

I wouldn't say the cats were mad at their owners, just that cats are territorial by nature... so any new animals on their turf will be met with hostility. I wouldn't let it bother you in all honesty, as it's not being directed towards you on purpose... she is just pissed off that some unknown cat is is around. Introductions of new cats are process and will take time to get them use to each other.

I watched this multi-part video on youtube that seemed really informative with regards to introductions:

http://www.youtube.com/watch?v=H_mgXHAMDZI

It is typical that she is mad at you/mad that you smell like a stranger cat. It will get better but she may get mad on and off after you go visit the cat. Start doing a scent exchange if you know the new cat is free and clear of parasites and critters. I have found it is best to wait until aggression passes before doing any face to face introductions. It always goes much smoother that way.

If the any full out cat fights, you are robably introducing them too soon. There will be some some growls, hisses, and swatting, but any fighting should really break up quickly. The less fighting they do, the sooner they trust each other, and the sooner they will be friends. Time is the only way to mediate that. You also need to develop a relationship with the new cat before you introduce the two.

The first new cat tends to be the roughest, in my experience at least. Good luck!

_________________
The little monsters 3

Somebody is not happy with the new arrangement. A new kitty, new smells. Basically, this upsets the other kitty. Introducing two cats takes time and patience. It's not that they may never be friends ... it's that it will take a long while for them to get along with each other. As for your kitty being upset with you ... it should pass with time.