there is always a camel for hire at the entrances of the kamasutra temple. ask to take you to your hotel. the cost will be a couple more dollars than the taxi cost.
There are regular bus services which go through Khajuraho from Jhansi, Mahoba, Satna, Harpalpur and Agra. Around Khajuraho there are rickshaws ready and available to take you around.
When we stopped over in the middle of the road and had tea, we saw men and mostly women carrying woods on their heads. I think they have walked a long way and the woods are for use in the kitchens.