So I had to go back to the drawing board, with a new design
Still using the same Bluetooth module , but now had to change the MCU to an ATmega16. The idea behind this was- how about burning the Arduino/Processing bootloader on the MCU so it can be programmable via Arduino IDE.
This is the new schematic,
I haven't had the time to make out a prototype but will so do.
to burn the Arduino/Processing, you can go and read this tutorial.
#The project its still in progress....