I downloaded full site backup of home,databases etc. I want to restore my site but I cannot find the folder where the backups are located in my .tar.gz backup
You should be able to restore the site directly from the tar.gz backup that you created. If you need to restore a certain part of the site, then you need to break into the tar.gz file and pick out what you need.
Okay, but I'm navigating through the archive and can't find where the databases are located directly.
If you have created a full backup from cPanel and want to restore as it is, it won't be possible from cPanel. The full restore creates the account again and since the account is already present on the server, it cannot be restored. The full restore it possible from WHM OR via SSH as 'ROOT'. If you want to restore certain files OR databases, extract the full backup on your local machine and restore it. You will find mysql databases in the 'mysql' directory and you can restore them from cPanel >> phpMyAdmin.
You can use a program like winrar on your local pc to navigate through the .tar.gz file. Your public_html dir is located in 'homedir.tar' which is in the main .tar.gz backup file. Your databases (.sql files) would be in a folder called MySQL in the main .tar.gz backup file.