Title says it all. I cannot wire money at this time can Nepal banks will not accept paypal payments, so I read somewhere can do this via bitcoin but I need step by step instruction for sending and for my friend to covert to Nepali Rupee and withdraw?
you can try
https://www.changetip.com. It's very easy. deposit bitcoin to your changetip account and then you can tip your friend.
it's free service and very easy to use.