Hello Vrushali,
we use a similar setup for Debugging the MPC5777C. (Edit: same Setup as Peter)
You need a Power Debug Interface USB 2.0/USB 3.0 (LA-3500) and an architecture specific debug cable, for MPC5XXX the LA-3736.
The Trace 32 License is programmed on the debug cable, for multi-core debugging you also need the LA-7960X license.
Florens