I have two queries:-
Can we create a List from SharePoint Designer workflow? I can't see any action for creating list.
Can we break the permission of list and provide custom permission through SharePoint Designer?
Here I am mentioning some links those can help you doing this with Rest API:
You can achieve the desired outcome through web services. So basically you have to use call web service actions from your workflow.
In your case you can use
Add method of
http://<Site>/_vti_bin/Lists.asmx web service to create the list based on a particular template. See this url for more information.
For modifying permissions you have to use permissions web service at
http://<Site>/_vti_bin/Permissions.asmx there multiple methods which might be useful in your case based on what you want to do. If I were you I would look at documentation here