How to set the "Read More" link (in Rewrite Rules for Body field) to point to the node url instead of the title?
Just change the More link path to the node/[nid]

Add field nid to the views field and exclude from display. Make sure nid is above body field. Re-arrange the fields by clicking on select list next to field label and drag nid field to top of body field. It works ! 

Drupal l function while generating links will convert automatically to path alias blog/blog-title !