Most Helpful Girl
First of all, I'm sorry of all you're going through health wise, and I hope all works out for you! In some ways, I was in a similar situation a while back...I have a tumor, had to have various surgeries, different treatments, etc. On top of that, I had developed feelings for a really good buddy of mine. I chose to hang out with the group, despite having to see him all the time, and I recommend you do the same! You need joy and laughter in your life, and like most people, you need your friends to be your rock. Don't lock yourself up at home, go out and have fun with your group! I can't really give you my opinion on what to do with the girl you like, because there seems to be a deeper story. I know it can be awkward seeing her at times, but just make sure there's always people with you guys!
Oh! You mentioned lacking confidence a bit... just as a side note, bald guys are insanely attractive...examples include fabio cannavaro or victor valdes! ;)