This is exactly how I helped myself out of social anxiety. It took years, but once I realized that we are all the same, and experience the same feelings at one point, I'm not so afraid anymore.

It takes practice. There can be formal sessions where one sits and focuses on "what is", the details of what the body actually feels like, what the room looks like, the sounds, breathing. Observing thoughts as things. Then one can practice becoming aware throughout the day. If I'm waiting in line, I can focus on the details of that environment. If I'm in a restaurant, same. The idea is to get better at being in the present, where and when life is actually always happening, unfolding, etc. The sensation of anxiety then becomes just that, a harmless uncomfortable feeling that is part of the moment. Any thoughts about the sensation then can be seen for what they are: little stories we concoct that keeps the adrenaline pumping. Memories can be seen for what they are: little video clips of a past reality that no longer exists, and will never exist again. The content of memories are no more real than the image on a TV screen. Our favorite actor on that little screen is not the reality of that person. It's an electronic image. Same thing with memories. Not real.

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