I just came back from Nainital on Sunday and took the Moradabad, Bazpur, Kaladhungi route both ways.

The route is excellent.

Take special care to get onto Moradabad by-pass. To get onto it, you lookout for a hotel named Westview just after the Mahavir Jain college on left hand side.

Building for this hotel looks impressive for this stretch. Immediately after this hotel there is a flyover which is under construction.

Take a right turn below it and get onto the wrong side of fly over. That is the way to get onto the bye pass.

As mentoned in one of the posts above, take a left turn at the end of bye pass. This left is as good as a U turn. Few km down this road you will hit a Y junction where you have to keep right and then it is one straight road to Nainital via places like Udham Singh nagar, Doraha and then finally a place called Corbett Nagar or something like that. At corbett nagar you have boards marked where you have to take a left to Nainital.

I had no problems whatsoever on this route and driving my SX4 on it was pure fun.

Happy vacation and happy motoring..
Raj

I have come back from this route, mostly out of fun than for anything else. The route is more scenic, quiet and hardly any traffic. Beyond that its not a great choice if you want to make it short or to make it quick.