They may not have cancelled it, but instead they may have marked you for the next time you apply for admission to the U.S. And if you apply again...

You can leave the U.S. for as long as you wish and return to resume your H1b.

It does not sound like unauthorized employment. In my opinion, it is most likely permitted.

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I do not believe a school is obligated to admit students who have pending VAWA applications.

Were you granted a change of status to H1b? I do not see why you need to do anything.

Sure, you can file a form AR-11 to notify USCIS of your current address, place of work, phone and email information.

No, filing an I-485 does not cancel CPT.

You should be eligible, if you were in the U.S. since December 20 '99.

I think it is very likely USCIS would do that.

There is no set rate, and in addition it depends on whether there are dependents, and whether the fee includes consular processing.