I recommend using Special Recent Posts, but you can also try AnyLoop in our Store. I've not used the latter, but Special Recent Posts does let you specify a category for displaying one or more posts from a category. Since it uses shortcode, you can place it anywhere, and you can also have two different formats for your category, like a single (latest) post with thumbnail, and several under it, with title only.
Unfortunately, since the blog page requires that no content be added to the edit field, it's not possible to add things below the loop, unless you use one of the available sidebars (like Universal).
Thus it is best to use Special Recent Posts, because you can pull the last X (number) of posts from the site, then break it down by category below as you can re-use shortcode several times.