Hey,
I am 19 and I have hair on my nipples aswell. I dont think its because of testosterone (Though it just as well could be). Some women just do. Majority dont I think, but lucky women like me and you.. we get to be special.

I shave and it hasnt bothered me, im just careful. But I do agree that a cut could get ugly. Be careful when putting Nair on your nipples, Ive read some cases where they say to avoid areas like nipples and genital areas. One day Id like to get lazer hair removal done, but im managing. I also have hair around my belly button. I used to use nair for that, but I got fed up one day and shaved and it works just fine as long as you keep it up.