I've had very similar problems. I have extreme problems with social anxiety and panic attacks. I've been through group therapy and I'm still in individual therapy, but I still avoid any social situations at all!

I'm still working to get better at it. One thing that has helped me was something learned during the group therapy. It's the notion that these types of beliefs are simply irrational, no matter how real they are to you. It is very difficult to do, but I ask myself "is this situation really going to be that bad?" I know that I am thinking about the situation in an irrational way, and I challenge myself to "STOP" thinking about it in this way, and try to envision the situation in terms that are more likely.

Like I said, the social/public situations usually still end in panic attack for me, but I find myself more frequently able to get past it by thinking about it in a more logical manner.