Alright so a couple of weeks ago, my cousin tried to hook me up with one of his friends. At first I was scheptical, but I accepted, and she turned out to be pretty decent, I'd say like a 7.

The thing is I'm ridiculously shy around girls I don't know, and so is she around people. She just recently broke up with her bf, she had a bad abusive relationship, but the thing is I was so nervous the first time, I kind of acted distant and didn't move in to get to know her.

The second time we met it was with my cousin again (he has a gf and she my cousins gf's, best friend, sry for the confusion), but again I had no idea what to do, like hold her hand while walking to the club or some other thing. She ended up getting bored after 30min and left with the work excuse.

Now I'm not obsessed with her or anything, but I'm thinking she'll be a good place to start practicing.

Any ideas?

Well I would say you already learned something... Every athelete knows that hesitation kills the play.

Now move to the next girl.

In conjunction with the above good advice, you must be willing to lose the girl! You were too afraid to make a move or do anything because you added too much pressure on yourself and worried too much about the consequences.
Take that chance if she pulls away or screams "rape" then you will not be here asking should I have made a move and would learn to get a feel for how girls react in situations.
You seen the potential in the interaction, how are you going to learn what works without trying things instead of playing it safe and failing.

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"That's how you become great, man. Hang your balls out there!"--Copy store clerk (Jerry Maguire)

Tnx for the advice. I realise I've got a huge problem assuming the worst will always happen, I'm working on that by trying to go to new places (like football matches) or going out on work days.

But the chances are, seeing as how I hang out with my cousin mostly, that I will meet this girl again, and I need a few ideas of how I can remedy the situation I put myself in.