it may not be a bad idea to hire one driver that can take you from del to agra & then on to khajuraho, instead of different drivers for del-agra & another one for agra-khajuraho....if you are interested then let me know & i can recommend a ta my office uses regularly....
my last trip to khajuraho was almost 7 years ago & i stayed at the radisson which was very good....i recommended it to another friend who went there in 2013 & she liked it as well....
in varanasi i always stay at the gateway hotel & can definitely recommend it....its a taj property....