Best Practice storage when using both sql and notebooks - warehouse or parquet

"i thought of making my stored procedure logic directly in the Lakehouse using notebooks as a kind of stored procedures (Spark SQL), and then invoking these whenever needed.

But i am unsure if this is a good idea?"

I think this is a good idea. Use Spark SQL and Lakehouse with Delta Table. Just try and see if it can solve your need. If it does, then I think this is the most efficient technology and a recommended way.

Please share if you stumble upon some specific roadblockers.

Remember to run OPTIMIZE and VACUUM at suitable intervals. In many cases, running OPTIMIZE and VACUUM once per day is a general okay solution. Depending on how often you make updates to the data tables.