Custom XSLT template - Content Query Web part

I've added a content query webpart (CQWP) to pull description (rich text) from a list and display it. I added the following custom template -

<xsl:template name="MyDescription" match="Row[@Style='AboutMY']" mode="itemstyle">   
      <xsl:value-of disable-output-escaping="yes" select="@Description" />
      <xsl:value-of disable-output-escaping="yes" select="@Markup" />
      <xsl:value-of disable-output-escaping="yes" select="@Department" />
</xsl:template>

Issues I've -

1. I don't see any of my custom XSL parameters (Markup, Department) in the web part properties
2. Eventhough I've mentioned output-escaping as yes I'm getting the html rendered as it is.

Any ideas?