Harry, please stay on one thread. It makes it a lot easier for folks to help you and follow your situation.
After having an affair with my wife's close friend & getting caught 2 months back as mentioned in the original post there is no contact with OW on the phone or meeting her alone. I confessed everything to my wife 15days back as mentioned, & she has been extremely understanding throughout & is willing to work on our marriage & move ahead in life.
Then go forward with your BW. The justifications you posted after this statement are ridiculous. You are still in the fog and don't realize what a blessing you have - a BS who is forgiving and understanding and values your M, like you so obviously did/do not.
nuh-uh.

The things you listed are not problems. They are justifications.
1)we all are in the same group (5 couples) & I fear losing all our other friends if me & my wife stop going out just to avoid meeting her. We all friends are on Black berry messenger group & its impossible to avoid her. OW feels feelings will die down with time so be patient.wht should we do? how can I stop thinking of her & be in the same group of friends. is it possible?
No, it is not possible. NC with OW MEANS NC with OW. FOR LIFE, Harry. You run with the same crowd - you should expose your own A to all these friends so they can watch their own spouses with you and the OW. You can find new friends. Besides, right now you and your BW need UA time - that means time as a couple to fill each others' ENs, devoting your attention to her and not your friends.
2)When we all are out in a group for dinners or movies i go into my shell & become extremely quiet which is not my personality. i want myself back but how ?
OK, #1, do not include the OW/OWH in your group. #2, suck it up. "I want myself back" is fogbabble. There's a post on here about "finding yourself" - I'll look for a link. You think you are "lost" now - but wait until the full reality of what you did sinks in and then come back and talk to me about feeling depressed and withdrawn. Think about this: were you really "you" around the OW? Don't answer that right now. Mull that one over in your head for a while.
3)i have constant questions coming in my mind that how can OW be normal around me & hide her feelings or she has been a [censored] & used me. HOw can change my thinking.
The last thing you should be worrying about is what the OW thinks. Yes, she used you. I used the OM I had an A with. When you are a WS, you are rotten to the core. That includes you, me, the OW, any WS while they are an active WS. OW doesn't love you. Oh, you may have thought that, thought the two of you had some "speshul" star-crossed love, but it was all lies you fed each other.
i don't wanna hurt my wife any longer & really want to work on our relationship but many a times i feel very sad at work & cry a lot as i miss that OW who was part of my daily routine.
Because of all this i have lost my self confidence & my wife & I are going through emotional stress & on the other hand the OW is perfect & enjoying her life with our friends as her husband doesn't know anything accept for the fact that me & her don't talk & ignore each other when we meet.
I feel very angry whenever she is around as i see my friends drifting away from me.
How do i resolve this issue & save my marriage & keep our friends also (friendship since 10years)
I had a LOT of anger towards the OM in my sitch as well. To this day I have no idea if OMW knows - my H never exposed, but I sent her an email. As far as I know, OM's life is going just grand, and my BH has moved out and says he wants a D. But you know what that anger was doing? Robbing me of precious energy and time. Every time I nursed the anger at the OM, I was giving him space, rent-free, in my head. So I sat down one day and I wrote a letter to OM. Got all that anger and bitterness out on a piece of paper. In that letter I said I was done with giving him space in my head. I took that letter out into the yard and I burned it. I'll leave OM to God, or fate, or karma, or whatever, but he is out of my hands.
i know i have done a big blunder & made my wife's life a mess but i can't afford her to loose all her friends also because of my stupidity.
my wife is of the opinion that you should be normal around everyone & doesn't want the OW's husband to know anything as it will ruin her marriage.
Should i confess my true feelings of sadness & crying at work to my wife as i haven't mentioned this to her as i feel she will be extremely hurt that how can the OW affect me so much.
You have no room to sit and feel sorry for yourself b/c you miss the POSOW. You have a BW who wants to restore your M. Get to work.