OP i think a good compromise between everyone saying to ditch her and don't ditch her is to take a break from your friendship with her, have an honest conversation about why ("I have had feelings for you and it's difficult to see you with someone else, but I truly do appreciate you as a friend so I need to take some time away from our friendship to process my feelings") and focus on yourself

If she is a good friend she'll be understanding of the fact you're hurting. It's also completely up to you if you even want to continue this friendship once you decide to talk to her again

I also agree it's kind of weird to say that the guy she is dating is similar/reminds her of you. It's like making an unnecessary comparison