Congrats OP, don't forget to call her today.
I agree with some of the people telling you to cut back on the masturbating, sex will never be the same as you beating up on yourself. There is hope though, the best orgasms I have ever had are from sex, I shot over her head from the back end, and not diddling. Funny enough, I have had some pretty stifled orgasms with the same person who has given me the best ones, it's a matter of finding out what is best for you and her.
First times are usually pretty awkward, maybe you couldn't get hard because you were nervous, drunk, desensitized, or any combination of the three, but I can assure you that as long as you are attracted to her getting it up shouldn't be a problem. Blowjobs can be bad, I know my first girlfriend and the one I lost my virginity to was so bad at them that I preferred she not even try, but when you get someone who knows what they are doing then it is amazing. I think once you learn what she likes and she learns what you like the sex becomes incredible.
I am happy for you OP, I want you to keep at it and have some good sex.