Ok, so far I have not received any answers. So I will just update as an answer whatever I have been able to solve.
- There is an official Blogger API from Google. You need to add a request to start using it. The usage is capped, but gives a lot of flexibility in terms of using it.
- I think we can store the content in a local SQLite database for offline reading.
- No idea on how to work with images inside the blog entry
- I think we can parse the blogger feed data without any restrictions, just that it won't be as easy as with Blogger API.
Links : https://code.google.com/apis/console, https://developers.google.com/blogger/docs/3.0/getting_started