I did my H1B stamping in canada. I was there for 1.5 months. I gave interview 2 times. Now I think it would have been better if I had gone to Nepal. It felt like it makes no difference whether you go to Canada or Nepal.
But the good thing about going to Canada was that I got to see new place and I was able to work while I was there.
And I hate Canada for its brutal winter :)

Why do you hate brutal winter. Love the winter while it last. I don't know what was your situation but it took one of my friend just about a week. Took me about couple of weeks (i had issues though). Don't go to Toronto. Don't go to big cities where there are lot of applications, they know more rules of immigration. I did mine in Calgary, AB and my friend did the same.

Go Nepal.

Go Nepal. Even if you have problems, you can spend time with your family. It will cost you alot to stay in canada for month/s if you have any issue with your stamping.

Two aspects:

Going to Canada:
-You can work remotely while at Canada waiting for visa processing time. Visit places during weekend.
- If you have no relatives or friends living in Calgary, Ottawa, Toronto, you spends lots of $ for hotel and foods.
-Processing time depends as there will be background check and it will take minimum of 2-3 weeks if everything goes smoothly, otherwise expect delays. Are you ready for that ?

So decision is yours: If your company can provide you access to remotely work, you are financially fine, otherwise not a wise decision.

Going to Nepal.
-You will be living with your family and having good time.
-You will not be able to work remotely as Internet bandwidth will not be sufficient to work (my thoughts only, you can ask friends if they tried doing work through remote connections.)
-Processing time might be little late than going to Canada if you stuck in the administrative background check.
-If your time delayed beyond 2-3 months, will your company still be holding your job. I have seen some of the guys lost job as they could not able to come back on time and got stuck in Nepal for longer.
So, decision is again yours.

Thanks for answers guys.

Reason I am hesitant to go to Nepal is I got H1B in IT field which is not my major. Most people I know in this situation have stayed in US until getting GC. I dont want to go to Nepal and get rejected and get stuck there ..

Also If I decide to go to Canada, will I get a tourist visa as I dont have valid US Visa (student visa expired already) although have valid H1B status. I have friends on other side of border so staying there shouldnt be a problem. If I get Canada visa I am thinking to drive there. Is this a good idea?

If anyone else is my situation and have been here please leave a comment. Thanks everyone.

Before you go to Canada,

1. Get appointment date fixed online at the US embassy (Ottawa, Toronto, Calgary, Vancouver etc).

2. Get appointment fixed at the Canadian Embassy nearby and show them that you are going to Canada to renew visa for H1B stamping. (They do not care about your F1 or H1B as long as you are not going to stay there and return back to US).

3. Schedule everything for US visa date and Canadian visa interview date, so that you do not run short of time.

4. Reach Canada 1 or 2 days before Interview.

5. Get all documents from your employer, your project details if you are working through consultancy.

6. Be prepare that if you work for the consultancy and in IT when your degree is non-IT, they ask too many question about the project and sometimes they even ask about the technology you work on, JAVA, .NET. Do some research on the interview pattern.

7. Talk to your employer that if you stuck in Canada due to administrative clearing (background check), will you be able to work remotely as that will take at least 3-4 weeks of stay and during that time, you and employer have to followup with the DHS, USCIS for expediting the processing time.

8. Confirm that your employer is e-verified company, that will shorten your administrative processing time for sure.