Hi Sapre,
Q1. Is it must to use external IC (MAX3353E) for implementing OTG?
If so, what makes it necessary to have? I mean the microcontroller has configurable pull-ups and pull-downs, I can detect ID pin by connecting it to a GPIO and I can use external charge pump IC to support more devices on my TPL than what I can using MAX3353E. I was thinking that since OTG controller is built in with transceiver, I won't be required to interface such external IC and increase my burden by having to add even additional software in the form of I2C interface.
A1: It need to use external MAX3353E USB OTG PHY for implement USB OTG function. The OTG PHY supports USB OTG session request protocol
(SRP) and host negotiation protocol (HNP). If just use external charge pump IC and connect ID to a GPIO pin, which will be USB dual-role mode. The difference between OTG and dual-role controller.
OTG: on the go, it is the protocol used EXCLUSIVELY for two devices that are OTG capable to interchange host and device roles dynamically without loosing connection.
Dual role controller: a USB controller that can be either host or device in different connections. Some dual role controllers are OTG capable and some are not.

Q2. What are the values of internal pull ups and pull downs used in USB OTG interface? I am unable to find them in technical datasheet and user manual.
Edit: Ok, pull downs are 15Kohm - mentioned in user manual.
A2: The internal pull up is 1.5Kohm, internal pull down is 15Kohm.
Q3. Does this OTG module support ADP protocol, VBUS discharging, data line pulsing, etc. required by the OTG standard? I can see that MAX3353E supports this but I can also see that the same is supported b the HS OTG controller in K60 (chapter 51 in user manual) but no such information is present in chapter 48.
A3: I think your means Session request protocol (SRP), which is required by the OTG standard.
Wish it helps.
B.R.
Ma Hui