"It still hasn’t hit me yet," singer-songwriter Julia Michaels tells PEOPLE of being nominated for two Grammys this year

By Dana Rose Falcone
January 28, 2018 07:55 PM

Julia Michaels has written songs for artists who have dominated at the Grammy Awards in years past. But this year, Michaels’ hit “Issues” earned her two nominations of her own in the song of the year and best new artist categories.

“It’s surreal,” she told PEOPLE at Delta Air Lines’ Grammys party in New York City Thursday. “It still hasn’t hit me yet to be nominated both from my peers and people that I look up to. It’s really amazing.”

Michaels and her fellow best new artist and song of the year nominees Alessia Cara and Khalid are making Grammys history, as 2018 marks only the second year that three artists have been up for both awards. The rare occurrence happened last in 2002, when India.Arie, Alicia Keys and Nelly Furtado received nods in the two categories. (None of the three singers ended up taking home either award.)

Be sure to check out PEOPLE’s full Grammys coverage to get the latest news on music’s big night.

Julia Michaels
| Credit: Bryan Bedder/Getty

RELATED VIDEO: Here’s the List of Nominees for the 2018 Grammy Awards

If Michaels walks away with a victory at Sunday’s awards show, the Iowa native, 24, knows exactly how she’ll celebrate. “Lots of tequila and even more hot Cheetos!” she revealed.

Julia Michaels
| Credit: Broadimage/REX/Shutterstock

While stepping out as an artist has rewarded her with critical and charts success, Michaels says the decision to sing her own songs has also pushed her to face her fears.

“I never really got to do that as a songwriter,” she said. “I was very comfortable in my bubble. Now I’m performing, doing a lot of things that would normally scare me and I’m getting more comfortable with it.”

CBS is broadcasting the 60th Annual Grammy Awards, hosted by James Corden, live from Madison Square Garden in New York City on Sunday, Jan. 28 at 7:30 p.m. ET.