Hi Jayendran,
displaying an image is not a huge problem per se. Just add a simple "img" tag with an absolute value for the "src" attribute pointing to the image, it does not need to be served by the camunda BPM platform (and, acctually, probably should not).
When the upload is completed, the popup will interact with the "opener" window to pass the absolute URLs of images back to the form.
But they are other ways, for sure.
Anyways, you will need some javascripts in your embedded form.
I hope it helps.
All the best,
Valentin