can we encash the mylot earnings from paypal account?

It is not possible to get the cash from myLot. It would be sent to your paypal or moneybooker account. As far as I know paypal would allow you withdraw your money if you have verified account, by sending your deposit to your bank account. If you can't do that I think moneybooker allowed you to ask the withdrawal with cheque (CMIIW) and I think it would be easier for you to have the cash that way. Good luck :)

Since Manjalvanam is from India, You can link your bank account with paypal for withdrawing the amount. Paypal will transfer the amount to your account. You need to enter the IFSC code of your bank. That you will get from an excel file from RBI site, if you don't know, you can ask your bank for that code.

That might depend on where you live. In the US we can simply write ourselves a check from the paypal account and have it mailed to our home.

I think you can by way of taking a draft and they will courier to you but i believe it costs more to you rather than spending on net or transferring to your bank is better. If you need a guidelines you can try it out with paypal itself by making FAQ