Why does drain current stop increasing after a certain value of gate voltage is obtained by a MOSFET?
A supply of 10 volts across 1k means 10mA is the maximum current you can get thru the MOSFET. That is the problem with your experiment - no matter how much more you turned the juice up on the gate, the aiming point for drain current is 10mA and can not be exceded no matter how hard you try.

Of course Vds decreased - the mosfet was turning really hard-on and acting as a very small value resistor. This small resistance forms a potential divider with the 1k to make a very small voltage that is nowhere near 10V.