One option is to remove the new line and then grep, as in:
cat myfile | tr -d '\n' | grep {{.*}}
But if you say this is an XML file, why not use an XML parser that uses a property of the inline structure, and not just a regular expression?
EDIT
Grep regexp are greedy, you can use perl regexp:
cat myfile | tr -d '\n' | perl -pe 's/.*?({{.*?}})/\1\n/g' | grep {{
This should output one match per line. If you have nested {{then it will be even more difficult.
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