What is most gracious way to exit a doctorate program?
Whether you can do this without marring the professional connection with your advisor depends more on who she is than on how you go about telling her (yes, the conversation is necessary). Do thank her for helping you learn all you have.
Your commitment to wrapping up your current project is important.
If she's the kind of advisor she should be, she will wish you well and tell you she hopes you resume your research some day and keep in touch, even if she does not fully understand your choice.
(I like your SE handle.)