Maya, you MUST go. Such occasions are invaluable for your career. Every person you meet, no matter who they are, may someday become an important business contact.
I have a work conference coming up in a few weeks, and it will be the first time I get to meet the people I've been working with for the last year. Yes, I see them on video conference, and talk to them over the phone, but it can't replace real life interactions. I would not miss this opportunity for the world. Every time I have such opportunity, even if it's as simple as a dinner, it makes such a difference.
Tips on how to handle the occasion:
1) Remember that first impressions are what counts. If you can just get through the first 30 seconds of each introduction, you've won. It's that simple. Practice your smile, your eye contact, and your handshake. Feign confidence. It will get easier and easier with each introduction. And, of course, dress your best - we know you can do that.
2) Make a list of safe topics and comments you can make, during those first 30 seconds. "So nice to meet you, <insert question>". Questions work the best, as it lets you off the hook while they answer. And, everyone loves to talk about themselves!
3) It helps if you do some homework in advance, particularly for any VIPs you may be meeting. "I saw your exhibit last week - I wanted to ask you where you got the idea to... <I dunno... something that shows you paid attention>." "I understand you are an NYU grad?" Even, if all else fails, "Wow, I love those shoes! Where did you get them?"
4) Keep moving. Don't latch on and lock any one person into a long conversation. 5-10 minutes, max, then move on to the next person. Exception: it's a VIP and they seem to keep asking you questions. You can always say, "I don't want to tie you up, I'm sure you want to meet and mingle too."
5) If you are overcome with a case of the nerves, just admit it. "I'm not good at these parties, but I'm practicing! I'm told it gets easier - does it???" Everyone likes sincerity, and they are probably just as nervous as you are.
6) Stay away from volatile topics like religion, politics, etc. I know you know that, hee hee.... read the news headlines that day, so you can always fall back on current events. Even the weather is a fair topic. Phrase everything as a question: "Did you hear it's going to be 90 this weekend?"
I promise you, this gets easier with practice. Really, it does!