This is how I understand epsilon ($\epsilon$) and delta ($\delta$) relation (please correct me if I'm wrong)-
Let the limit of $f(z) = L$ as $z$ approaches $k$. To prove or see that it is actually the limit,
let us take an $\epsilon$ such that $\epsilon > |f(z) - L |$
If, for every $\epsilon>0$, there is a $\delta>0$ such that $\delta> |z-k|$ , then the limit exists and is equal to $L$.
I'm unable to understand how this works. How does the existence of such a $\delta$ proves that limit is what we assumed?
Your problem is that you need to realize that the existence of a suitable $\delta$ corresponding to any arbitrary $\epsilon>0$ such that whenever $|z-k| < \delta_\epsilon$ you have $|f(z)-L| < \epsilon$ is the definition of the statement that the limit of $f(z)$ as $z \to k$ is $L$.
For any given $f$ and $L$ it may be hard to find a suitable $\delta$ for each $\epsilon$ and may be hard to prove that this formula for $\delta$ always works to make the function close to $L$. But once you have shown this, you need go no further because you have shown that the definition of "limit of $f(z)$" is satisfied by $L$.
It's like a game: Without saying what $\epsilon$ is (other than that it is positive), make an educated guess for a good $\delta(\epsilon)$, prove that when $z$ is that close to $k$ the function is within $\epsilon$ of $L$ and you win. (Assuming you consider yourself "winning" by proving that $L$ is the limit.)