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Cavity nonlinear optics enables intriguing physical phenomena to occur at micro- or nano-scales with modest input powers. While this enhances capabilities in applications such as comb generation, frequency conversion, and quantum optics, undesired nonlinear effects including photorefraction and thermal bistability are exacerbated. In this Letter, we propose and demonstrate a highly effective method of achieving cavity stabilization using an auxiliary laser for controlling photorefraction in a z-cut periodically poled lithium niobate (LN) microcavity system. Our numerical study accurately models the photorefractive effect under high input powers, guiding future analyses and development of LN microcavity systems.