Dear MCH2KOR,
Please find my answers for your queries, please note that my response to your queries is purely based on my recent experience that i had with my VISA process.
"My concern here is:
1)
* How will we come to know that, Embassy initiated the process and sent a request to university to confirm the verification?
Answer : Your agent will have a fair idea about this, its advised to keep in touch via email or phone or inperson VISIT with the agent in your country, and simultaneously you can also keep checking with Degree Verification Department in your University if they have received any request for authentication letter from Saudi Cultural attache office.
2)
Is the candidate gets a email notification? or VISA consultant will get a email from Embassy that, verification to sent University/College?
Answer : Candidate is completely in dark and there is no email notification.This process is purely between saudi cultural attache department & university department incharge.
3)
* How much time Embassy takes to send this request to University?
Answer : to the best of my knowledge It should happen immediately and there is no such time line to send verification letter to University from Cultural attache department, if your agent submits all the correct documents to Saudi Cultural attache they will start the process immediately. If everything goes well then it will take minimum of 2 months. And if some thing goes wrong in between then the timeline goes indefinite. Your agent should be good to deal and guide you properly during this process.
Please find the below requirements to complete certificate attestation from Cultural Attaché.
1.  Original certificate, duly attested from HRD _ if it is done earlier make sure its not beyond 5 years. You need to redo the HRD if its done 5 years ago.
2.  Original Mark lists / Consolidated Mark list
3.  Original offer letter, duly attested from MOFA, Saudi Arabia.
4.  Passport copies, front & back page
5.  White background photo 1 No
6.  Name of the college from where the course is done.
7.  Undertaking on Rs 10 or Rs 20 stamp paper, with attestation by Notary.
8. DD in favour of University you completed your education.
8.  2 Forms duly filled _ please ask your agent to send these two forms.
Kindly note that courses done through Distance Education or Part time courses cannot be attested.
* Once University confirms the verification and Embassy received the same, what are the next steps of process to complete this procedure? "
Answer - The agent should send you VISA Number, MOFA Number & VISA Category to complete the medical and once you are declared medically Fit then send your agent the below documents
1.    Original passport (including old passports)
2.    Medical report with GAMCA slip
3.    White background photo – 4 no
And then your agent will submit this to SAUDI embassy for VISA endorsement, if all goes well then VISA endorsement will happen in 1-2 days time.
Your agent must guide you in the entire process. Please ask him step by step process.
Hope the above answers are clear for you.
Kind Regards
ImranSyed