Karaoke.
I used to be a Karaoke DJ, and I saw it over and over again. Someone coming up to me completely scared and frightened about their first time on stage. Finally, they'd get up (frequently doing a song with a friend or a group of friends), realize they really enjoyed it, and the next thing you know you couldn't keep them off of the stage.
It's a lot of fun for a group of friends to go up and do a group song--that way, all of the attention isn't on one person, and she can decide here level of participation--up near the mics where everyone can hear her, or in the background as far away as possible. Keep doing group songs until she's ready for something like a duet, then a solo. That way she can work up to singing by herself on stage in a time period that she's comfortable with.
I used to be a Karaoke DJ, and I saw it over and over again. Someone coming up to me completely scared and frightened about their first time on stage. Finally, they'd get up (frequently doing a song with a friend or a group of friends), realize they really enjoyed it, and the next thing you know you couldn't keep them off of the stage.
It's a lot of fun for a group of friends to go up and do a group song--that way, all of the attention isn't on one person, and she can decide here level of participation--up near the mics where everyone can hear her, or in the background as far away as possible. Keep doing group songs until she's ready for something like a duet, then a solo. That way she can work up to singing by herself on stage in a time period that she's comfortable with.