All opinions are welcome and I can use as much help on this as possible. ILS is sometimes a pain, but I am getting better at it.Navigating to the destination airport in GPS mode is easy. Flaring and landing safely is the easy part for me. What I am having real trouble with is this:

Once I am on the final approach, I switch to NAV mode. Now, I enter my ILS frequency into the NAV1 radio and find that my aircraft is misaligned with the runway by maybe 25 ft to either the left or right. I end up landing on the grass or tarmac if I rely on APR. Even with the correct heading and my heading matches the runway number. My autopilot is on APR.

Now, I am not sure how kosher this really is, but instead of using APR like people say here, I use NAV and it brings me closer to the runway. With NAV button on, I am closer to the center of the runway. I keep the HDG function on and steer the plane with the heading knob on the autopilot until I am even with the center. Then, I switch of HDG and turn on LVL (wing leveler) and turn everything else off. So, I touch down with the autopilot on to use the Wing Leveler and it works.  Then, on the runway I switch off Autopilot and stop the plane with my reverse thrusters.

Now, this works for me, but I have not seen anybody use ILS this way. The APR just does not work. Now, I want to know if you think my approach (pardon the pun) is fine. It works for me and I just struggle too much with the APR button turned on in autopilot.

LVL, HDG, IAS, and NAV work great, but APR is weird. The whole thing confuses me, but I want to know what I am doing and I still do not. 

Also, if Autopilot handles ILS, I always wonder when I should look at the runway and do I have to look at the runway at all. I mean, if Autopilot is supposed to handle everything, then I feel like I am cheating when I look at the runway, sightseeing the airport and pretty lights in front of me is cool, but that's all I want to do and not try to land using VFR. I know IFR works, but I find myself landing via VFR sometimes.

Thanks for the help and opinions in advance.

I am only using it on runways that use ILS and I do not have Yaw Damper on.

As soon as I am lined up with the runway, I switch on wing leveler and that seems to work