there's a line that says :
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$mail->IsHTML( false );
You should replace all the "\n" for "<br/>".
You can also change font, color, etc, you should start the html tag in the strings_english.txt file, more specificaly in all the "$s_email_notification_title" vars.
The tags should be closed in email_api.php, in the line where it says:
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$t_message .= $t_email_separator1 . " \n\n";
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$t_message .= $t_email_separator1 . " <br/><br/></font>";