Hello Sagar !
You've mentioned that in expression part of mail step, the container maintained populates SAP user id with "Type id" is G.
You've asked following question:
My main question still holds - from where does the e-mail address of the recipient get picked up for sending e-mails?
Check in SU01 transaction, e-mail ids are maintained for the user ids which have received e-mail at their Outlook account and also check in SO16 transaction, under the tab "Mail sy. grp", the radio button, "Send to home addresses of users" is selected.
In short, if e-mail id is maintained in SU01 transaction and "Send to home addresses of users" in SO16 transaction is selected, whenever notification has to be sent to SAP user id which is configured with e-mail id, e-mail will be addressed for those e-mail ids as well.
Regards,
S.Suresh.