Finally as per the suggestions from experts I managed to make the praline paste. I grounded the powder a bit more and the oils started releasing but fearing that more grounding may make the caramel taste more burnt, I finally added a few drops of sunflower oil (I use it in my cakes) to make it appear like a paste.
I have following queries now:
1) I was inspired to make praline by seeing Cadbury's Praline (as in the picture). I had not thought this through. I understood that the liquid on top is praline and completely ignored that actual praline is the paste below the liquid. Now the question arises, what's the top liquid? Is it caramel?
2) The Praline I made doesn't have very (almond) nutty flavour to it. What to do?