Okay, can we get instruction on how to extract coin from our DigitalOcean droplet. It has been so long since I have had to do console/coding like this

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Sure. I do it this way:
- ssh into remote instance
- ./primecoind listtransactions –> copy the address mentioned in the output at "address"
- ./primecoind dumpprivkey {{paste copied address here}} –> copy the private key returned
- on your local computer holding the "master wallet" -> ./primecoind importprivkey {{paste copied private key here}}
- now address holding the minted coins appears in your local wallet
No need to send coins over the blockchain this way, immature coins can be imported immediately.
So does this basically merge the wallets, or do I need to worry about what I already have in the 'master wallet'?
It's kind of a manual merge. Technically you just add a new address to your existing "master wallet" just like you could with any other address, too. In our case, that address is the one your newly minted coins were credited to. (Minted coins are always credited to a new address internally.)
All other addresses in your "master wallet" will remain untouched as will your remote wallets.
After importing the privatekeys, I see the blocks still show in the original wallet. I guess both wallets think they own the blocks. So.. if I spend some of the coins in the block involved, do both wallets register the transaction?
If I find this confusing, how do I make the original wallet to forget the moved block (but not all the blocks) ? I looked it up but didn't find answer. Thanks.