For me, the #1 thing you can do to aid stability (in any conditions but particularly when going upwind or crosswind) is timing your stroke so that at the moment the wave passes under you, you time your stroke with the wave peak. This way, the natural instability that is created by sitting on the peak is counteracted by the stroke brace (having the 3rd point of contact with the water to create stability). If your paddle is in the air as the wave passes under, you will experience a lot of instability. You know the old saying KIPITW! (Keep A Paddle In The Water!). The worse the conditions are, the more important it is to keep paddling!
The advice of your friend is very good as well. Keeping the paddle in the water past your hip will create significant instability. Make sure to keep your stroke forward - from your toes to your hip and not a micron behind it (although in reality we get lazy and do it, if you are unstable pay particular attention to how far back your stroke comes)
Last, you must master the Stroke Brace. That is, turning a stroke into a brace. 90%+ of the energy is still forward propulsion, but maybe you twist the blade or draw inward at the end of the stroke to provide some stability or readjust your center of gravity. When it is really chaotic out (like more than 3 directions of swell / washing mahcine) almost every stroke is also a brace. Applying forward energy while at the same time stroke bracing is key to paddling rough conditions.
Is this in the SEI or 560? The 560 has a stability 2 rating from Nelo which is only marginally better than an olympic K1 which just sounds miserable in anything but flat water. Although I dont think Stellar's or Nelo's surf particularly well, the SEI would be much better in waves if you're at all unstable.