How To Display Products With Paging on Magento Home Page

It can be done easly in magento backed without writing any custom code in file. Follow the steps below and you are done.

1. Go to CMS > Manage Pages and click on the Home page.

2. Under the “Design” tab, insert the following code in the “Update Layout XML” field:
[xml]
<reference name="content">
<block type="catalog/product_list" name="product_list" template="catalog/product/list.phtml">
<action method="setCategoryId"><category_id>3</category_id></action>
<block type="catalog/product_list_toolbar" name="product_list_toolbar" template="catalog/product/list/toolbar.phtml">
<block type="page/html_pager" name="product_list_toolbar_pager"/>
</block>
<action method="setToolbarBlockName"><name>product_list_toolbar</name></action>
</block>
</reference>

[/xml]