Very good, Ubeen! It sounds to me like you were experiencing hypnagogic imagery or, perhaps, the birth of a full-fledged dream scene! 
It's normal when we fall asleep for abstract images like pinpoints of light, swirling shapes, patterns, etc. to present themselves to our vision. If we maintain our awareness throughout this transition state, we will sometimes witness the emergence of a half-dream, which is what I believe you experienced. Sometimes, willing yourself to physically interact with this dream scene in deeper ways (particularly in a tactile way) will draw you all the way into the dream for a WILD (or Wake-Induced Lucid Dream.)
I've never experienced sleep paralysis myself, so I defer to your concerns -- you've been there, I haven't. One thing to always keep in mind, though, is that even in the (relatively uncommon) condition of sleep paralysis you are perfectly safe.
If you feel nervous about being awake during the transition to a lucid dream, you may want to hold off on practicing WILD and start with a DILD-based technique such as MILD. DILD-based techniques like MILD involve falling asleep first and then realizing that you're dreaming, and joining the dream already in progress. Here's a great guide on this family of techniques: Naiya's DILD & WILD Secrets
My advice would be to either resolve to shed your fear of sleep paralysis (which you may never experience again) or to try out a DILD-based technique for a while until you feel more comfortable. The ideal way to feel during a lucid dreaming attempt is comfortable, secure, confident, and very mildly excited. Do whatever you feel that you need to achieve that mindset. Best of luck!
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