you have been permanently friend zoned! there is NO return from that. Trust me, been there, tried everything, it fails. If you want some more insight, go and snag 'The game' by Neil Strauss.. read it and enjoy it, but take it with a grain of salt. The story IS the advice.. not the goofy pickup gimmicks he talks about along the way.
I'll tell you this much from all of my dating and friendships. If you havent been physical within the first 3 weeks (or some even say first 3 dates) it's just not going to happen, and nor will a relationship. She sees you now permanently as a friend! So keep that friendship but go on out and meet some new girls! Its not rocket science
Try POF, Okcupid, eharmony etc and MEET some girls. You dont have to marry them! You dont even have to go out with them more than once if you dont have a connection. BUT it's a great way to get over being shy.
Best of luck!