How to connect our daily life with RA principles?

I read somewhere that 'how people treat you is a projection of them onto you, but how you react is awareness of self". Basically people give you the business because they see something in you that they don’t like about themselves and instead of doing inner/shadow work, they point the finger and put their burden on you, so to speak. For example, I was with a woman that exhibited narcissistic traits, when we would talk about our day and I’d tell her about people doing me wrong and how it affected me negatively, she’d say, "it’s because you’re an Empath. I usually let her have her way, but when I didn’t, I was a controlling Narcissist, but my intuitive perception always assured me ‘No, you’re not, she’s projecting’. Then, she’d go cry to anyone that would listen, give them half truths, painting me as the villain and herself as the victim/hero. Of course people caught on that nonsense quickly because they’d come at me like flying monkeys and I’d tell them the whole story word-for-word and they’d say “oh, that makes more sense”. So I’d just ask “god” to help her see the error of her ways and not hold anything against her and just move on. I’d keep that higher ground and not lowering my vibration by retaliating, judging her or wishing her ill. It’s not easy to just let things go, it takes parctice of patience, and focusing on what you can control