First of all, have fun! I spent most of my son's childhood dreading the day I would have to let him get behind the wheel and then wound up thoroughly enjoying teaching him how to drive. The memories will make me smile forever.
I would start with a parking lot, then a cemetery, but please spend plenty of time on city streets, night time driving, and challenging weather conditions to make sure she is adequately prepared when the time comes to drive by herself and to save yourself needless worry. She might be more comfortable driving with some music on. If you homeschool, weeknights are a good time to practice without having to worry about too much traffic, just be sure to let her sleep in the next morning.
When she is ready, let her take over as much of the practical "Mom's Taxi" errands as you can. Be available in the back seat for quick advice when she needs it, but let her show off for her friends and help non-drivers to get around.
I needed a brake job shortly after ds1 got his license. No biggie. It was cheaper than driver's school. If she is interested in minor maintenance, support that interest. ds1 is amazing me and saving me a fortune with his knowledge.
Above all, celebrate this important milestone instead of fearing it! You are she will both do fine and have a lot of fun and enjoy some wonderful bonding moments together.