Hi Sujith
If you are debugging in FLASH this about the maximum number possible in the DBM module on the chip (some of the HCS12 should also do 3).
If more are required it will be necessary to either run the code from RAM, which may require special hardware. The next step is to use an emulator which are less popular nowadays since the BDM hardware has made them in most cases redundant and they do cost a lot of money.
Another possibility is to develop with a simulator. There is one built into the CW but it will only allow debugging quite simple programs and will not be very useful for complete applications.
If this is a serious issue for you you can also look at the uTasker operating system with real-time application simulator. It allows almost all code to be developed and tested on the PC and so debugging on the target is restricted to special cases. On teh PC there are no limits to break point and there are various other advantages sich as stack integrity monitoring and such things which are not really possible on the target.
It is designed for the NE64, specifically for embedded IP projects but could also be used for other HCS12 devices. See the following to get an idea about it
http://forums.freescale.com/freescale/board/message?board.id=16BITCOMM&message.id=897
It also simulates the Freescale Coldfire (M5223X) but has also be used for other ColdFire types. Maybe it could help you.
Regards
Mark Butcher
www.mjbc.ch / www.uTasker.com