As an attorney deemed an Immigration Specialist by the State Bar of California who is also a Canadian, my strong advice is to apply for adjustment of status with USCIS and to request advance parole which will allow you to leave and re-enter the United States. It is standard procedure, from my perspective, to almost always advise clients to apply for adjustment of status when you are in the U.S. That way, if there are problems with your case, you have appeal prospects. However, if you are outside the U.S., then these rights do not exist when dealing with the U.S. State Department. I hope that this reply has helped you.
As a specialist, I'm sure you this realize that Indians cannot simply apply for AOS without waiting several years. It wasn't a question of AOS vs. CP, it was whether one can go TN to AOS, and teh answer is YES, but it will take a long time.