At this point in time, I am using the following approach.
1. If you want to praise someone for their religious devotion in acts that are between Allah and the person, e.g salah, etc. say MashaAllah, TabarakAllah...
2. If you want to praise someone for how they deal with people, dont say anything, encourage them by actions that reinforce their good behaviors, e.g. by being nice to them in turn, etc.
3. Praising people in front of their face is not a good idea, it sometimes makes them conscious of what they are doing, unless you want to help someone suffering from low confidence, but be subtle and artful.
The above approach seems to give better results than my previous attempts, but I still have a lot to learn.
