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Worked with her for 3 years now. She seems to have gotten hotter over these 3 years as i don't remember really noticing her that much when i first started. probably went from an HB7 to an HB9. I notice she is always staring at me when I walk past. Shes one of the only girls who work there that actually holds eye contact with me. I get a lot of chicks staring but look away when i see them. And she does other things such as; i would be sitting behind her in the lunchroom, she would leave to go get a drink then come back and rather than her sitting back in her previous seat, she would relocate to a seat that is facing me. Obvious IOI is obvious. Iv spoken to her a few times, just natural conversation. I only just found out about PUA a few months ago so i hadn't been using any material. But things always get awkward. We go through phases where we would have a conversation one day, then the next time i see her we sort of pass without even saying hi. Then because of this I get deterred from speaking to her again. Even though she still sends IOI's every day.

We spoke again the other day when i saw her. Then today we both saw each other from 30ish meters away through plastic doors. Obviously we couldn't say anything to each other but the eye contact was still held between us for a good few seconds until she went around the corner. Then later on in the night, i was pushing some stuff around the shop while she was with one of the managers cleaning stuff. Once again from about 10 meters away, eye contact between us was held for a good few seconds before i had to turn away as i had to watch where i was pushing my stuff. I walked straight past her but didn't say anything or even look at her again as it felt like it would have been awkward with the other woman standing there. I feel as though if i keep doing this crap she is going to lose interest completely. I'm either going to start coming across as extremely AFC or extremely arrogant. I think my problem is i care about what other people think about me too much. If she is near other people i wont bother even saying hi. Not really sure why I'm writing this, just sharing. I feel i know what i need to do: Stop being so pussy and just talk to her every time i see her. Shes obviously into me. I think i need to go out of my way a little more to make conversation with her rather than just waiting till the next time we are both alone in the lunchroom at the exact same time.

Any opinions?

Just decided from this point on, im going to say hi to every person i work with the moment i see them. No matter if i have ever spoken to them or even want to talk to them.

Some creepy scrawny little dude, (not sure if hes gay or not) does this i have noticed. At first i though he was weird and wished he would stop trying to talk to me after he would say hi to me 3-4 times per day minimum. But now i actually dont mind him. I figure if some weird looking dude can get away with saying hi to randoms, a hunky man like me will do fine.

Just say "hi" to the group and continue working. Like you said, you'll do fine. Also don't freak out because she looks good. She is just another person with her own insecurities. If you don't dare asking her out yet, you could ask at what time she is planning to have her lunch break and say you go at the same time (or say you'll have it at one o'clock and if she joins you, i'm not sure if one is better than the other). Or ask if she is joining you to buy lunch outside (if that's normal at your work).
If she still sends you IOI daily, she probably doesn't think you're arrogant.

perhaps i could get to the lunch idea down the track. we have only really spoken 3 or 4 times in the last 3 years. i gotta make talking to her a regular thing first.

Why? If she finds out she doesn't like to have lunch with you, it will take half an hour of her life and she can just get back to work. It's not a risk at all for her because of the time restraint. Lunch is casual and can be interpreted friendly. If she says no (or makes an excuse the first or second time), you have lost nothing. I think you overthink this situation.

If you're really too scared, just approach when there are other people around and then ask her. Because it's slightly unusual to invite someone for a date with other people listening, it sends out just a friendly signal (or very confident, which is good). You say: "I'm having lunch at one. Do you have time to join me?" If she doesn't want to, she'll say "No, i'm busy at one". If she IS busy, she'll probably say: "but some other time". If you build in an easy way out, this cannot be embarrassing.
By talking to her 20 times first, you make things uncomfortable.

Im not 'scared' when she is alone. It would be worse for me to do it when there are other people around. Actually, that's the only time i haven't spoken to her, is when other people are around. I secretly think they will be judging me when i open up a conversation.

I have to disagree with your last sentence though, sorry to say. I have always found asking a friend i regularly speak to at work, what time they are going to lunch, than a random i don't speak to much. Seems more casual with prior rapport built. Asking pre-rapport seems more 'datish' to me.. Wait, do you mean uncomfortable in general, or uncomfortable for her?

I meant uncomfortable for her. It's not a bad habit to learn to get to know people slowly in general, but this is just lunch, not a wedding proposal. Confident men are more attractive.
People will judge you everyday no matter what you do. However, showing guts will rather get you respect than gossip at least with the stronger personalities. I'm an AFC with very little game and I fuck up a lot, but this is my 2 cents as an easy talker who gets along with most people. You learn by doing it. If you're continuing in your current pace, you will know her last name in about two years. You allready know she likes you. There is no need to wait at all.