I work as a software engineer on contract basis for a big IT company in London. Couple of months back our team manager got changed. Our new manager is very rude and impolite. Her reputation as being obnoxious is well known with in the company and I don't know why the higher management don't do anything out it. 

Anyways, she seems to be particularly harsh toward me. I don't want to leave the job as of now so I want some advice about how to deal with her?

It appears to me as if she treats us like students and she being headmaster, punishing us for every small mistake we make. I may ask for team change but being a contractor I don't think they would consider it.