You can rent a car in Indore.
The best route from Indore is as follows
Indore - Pithampur - Ghatabillod - Labour - Dhar - Mandu. The distance is approximately 95km and the roads are in good condition.
Bikes and scooters can be rented at the small village at the entrance to the city.
Visit all the Forts and Masjids and enjoy the culture.
Restaurant for regular Indian food at Malwa Resort - close to the Jami Masjid.
Traditional Daal-Baati may be savoured at the Jain Temple.
Nimboo pani is very popular and easily available refreshing tasty drink found everywhere in Mandu.
The Temple, in front of Jami Masjid provides a reasonably priced stay; in Dec 2009 it was INR250 and is entirely adequate for a one night stay for those who don't want air-con or a deluxe room.
Nearby is The Rest House, similar rooms for INR150 (Dec 2009)
For Hotels, MP Tourism offers excellent options:
1. Malwa Resort - 20 cottages - 10 AC and 10 non AC 2. Malwa Retreat - 8 rooms - 2 AC and 6 non AC
(bookable online, see [])
Another option is the Rani Roopmati Hotel.
30km from Mandu is a town called Dhar, there is an old Palace, Jhira Bagh Palace, which has been restored and converted into a hotel. This is a very good place to stay and the food is simply outstanding. A must stay if you are going to Mandu.