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Once you arrive in Kathmandu there is only way to get to Nagarkot and that is by road. You can either take a taxi or a bus to the city. Either way is available and the decision is up to you, and how much you want to spend. Getting a bus to the city is extremely inexpensive, but not the best way to travel because it is extremely long and uncomfortable. However, a taxi is more expensive, but would be faster and much more comfortable for the whole trip.Also, you can trek all the way to Nagarkot. You would, of course, need to get a map and the details from Kathmandu but it is doable. The views while trekking to the city are amazing and breathtaking.