Zeeba, if you're getting many different blues, there are a few work arounds.
I usually put my pure blue on a layer above. Paint with the pixel brush where the blue is, and then paint the texture underneath that. If the texture is ABOVE the blue, you can get slight off-blue valued pixels that will show up on the Index.
If there are a few blues on the index anyway like 3 or 4, cancel the conversion to 8bit and collapse your layers, select all, and copy the image. Convert to 8bit and open the palette. Change the last color to blue no matter what color is already there and the duplicate blues to black or white or whatever. Click OK. Paste the copied image. The pasted image will look proper because when you paste stuff in PS into a color index image, the colors will reorganize to match as closely as possible. This will fix any off-blue values, and the colors that may have messed up from playing with the palette.
The best way to extract a mask is to use the first method with the above layer of blue and pixel brush.