How do I fix this crack near the sway bar bushing?
Is it safe to keep driving ot like this?
thanks in advance!

 

Looks like a cracked frame to me. I wouldn't drive it until it was repaired.

 

cracks need repair

XJ unibody is not strong

cracks must be grooved out and welded by someone with experience

I would also weld plate over that and inspect all areas around steering box and opposite

Its dangerous like that

 

Weld, with doubler plates for strength. Looks like a straight forward repair, not a rust issue as everything looks good a clean there.

is she lifted, big tires, doing some hard wheeling, collision damage????

That is int he area of the steering gearbox, there are kits to strengthen that area, a must do for big tires and wheeling, and even for long hard street use.

Bummer, but an easy repair. not a death sentence by any stretch,

 

that's good to hear, I was also thinking of buying one of these