Thank you very much Sansar2 for your quick response.

Are you suggesting me to file for the 17 month OPT extension or not?

Will the DSO issue me a new I-20 with only the H-1b Receipt and Job offer letter, as you said in step 1? 

I don't have the H-1B receipt with me but I believe I can get it from the lawyer who sent me the email confirmation of the H-1b receipt.

Thank you

-Kanchhu