The more comfortable you are with your material, the easier it is to perform. If it were me, I would have it just about memorized beforehand--that way you have your notes as a safety net, but it's not likely that you'll lose your place.
I majored in theatre, so I've spent quite a lot of time singing and acting in front of an audience. I never had bad stage fright, but I never really loved it, either (which is why I now work behind the scenes). Preparation goes a really long way to controlling anxiety and fear.
For me, pretending the audience wasn't there or making "eye contact" with their foreheads didn't help. Making a real, honest connection always helped steady my nerves. It made it feel more like I had a friend in the audience, not just some guy watching me talk.