however I am not getting anything after I hit the startServer.bat -r hotrod. Just BLANK console and it remains like this forever.
What exactly are you trying to "hit"? What port, protocol, and request params? A hotrod protocol listener on port 11222 should be running. This listener will not handle http requests if your "console" is a browser. If you want to view what is going on in the infinispan cache you will need to use a jmx client. https://docs.jboss.org/author/display/ISPN/Management+Tooling
And how the JBoss knows what Infinispan it has to use and the location ? Where we should configure that ?
You have already configured this by defining the remote-store on the http session cache. The session-datagrid outbound-socket-binding gives the host and port of your infinispan instance.