MikroC Hardware Interrupt
You do not specify what is meant by "not working", so I'll just point out a few things.

The interrupt service routine posted does not seem to address the program function described.  This routine toggles a port, waits a second, then goes back to whatever was running before the interrupt was triggered.  Instead you say you want the program to wait for a button press, then do something, then wait for another button press.  

If the program is doing nothing but waiting for an input, you don't really need an interrupt, just a polling loop.  Interrupts should be used when you need to quickly respond to an event, or do something at a precise time.  ISRs should finish quickly; never should one include a one second delay. 

Another thing to consider: There is more to using an interrupt than writing an ISR.  I'm not familiar with mikroC, but in general you will need to at least set up an interrupt vector, configure the I/O or peripheral to generate an interrupt, and enable interrupts. Have you done all this necessary initialization?  

Also, upon entry to an interrupt routine, the CPU context, its status and registers, must be saved, and restored upon return.  Typically the compiler is alerted to this by using a keyword, often interrupt, in the function definition.   Does the compiler understand that this is an ISR?

Finally, make sure your watchdog doesn't timeout while you are waiting for input.

Oh, and don't forget: you may have to debounce the pushbutton.