Jenim, that was the best recipe for laughter when I read your report on the vadais! I don't know how you did the grinding, but I do mine on the grinder. If you don't have one, you can use a food processor and use very little water when blending. Then I shape the vadais on a ziploc bag, which is moistened with a little water. If the vadai batter is too watery, you can add a little rice flour to make it thick. If even that doesn't work, add some chopped spinach or cabbage. You should be able to get the vadais to slide off the ziploc bag. A piece of banana leaf works, but since we cannot always find banana leaves here in the US, I find the ziploc bag a good substitute.
As regards the paagu, yes, it can be tricky at first, but you will get it in time. I test the paagu by taking a little bit out on a flat karandi, then I use two moistened fingers (or else I run the risk of burning them!), take a little bit of the syrup between forefinger and thumb and gently try to draw it out. If the syrup is too thick, you will get two or more strings, if it is not thick enough, you won't get any strings, and if it is just right, voila! You have your one string. If it becomes too thick, add some more water, and let it just come to a boil, and test again! Don't give up, you will definitely master this with time and practice. Good luck!
By the way, the flakiness comes with the amount of butter added, or so I have been told, the more you add, the flakier it becomes! However, it also means a lot more fat is added, so I tend to add the minimum amount possible.