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Mixed Numbered List Levels
Is it possible to have the below output with two paragraph styles only (Level1 and Level2 - are my paragraph styles). If so, how to achieve it?

Is it possible to have the below output with two paragraph styles only (Level1 and Level2 - are my paragraph styles). If so, how to achieve it?

You can come very close to what you want. But I see the problem is that in the example you're showing you have a Level 2 preceding a Level 1.
Here's an excellent tutorial to produce what's called a multi-level list:
Numbered Lists — Part II Multi-Level Lists

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