Behind the Watsala Durga temple is the Yakcheswor Mahadev temple which was built by King Yaksha Malla in 1480 A.D. the temple can be called a substitution for the Pasupatinath temple of Kathmandu, the construction of this temple has its own legend. Once, war broke between the small kingdoms of Bhaktapur and Kathmandu. The devotees of lord Pasupatinath who lived in Bhaktapur could not visit Pasupatinath temple in Kathmandu and people were very sad realizing the problem, the king constructed the temple of lord Yakchheshwor Mahadev with the same structures and the statue of Shiva Lingaum as in Pasupatinath temple itself.

The temple having a square base has two levels of slanted roofs; triple doors are four faces on four sides and an ox in the worshipping position in front of the western gate.

The huge roofs are supported by beautifully carved wooden roof struts. The erotic scenes carved at the base of these struts usually surprise tourists, who understand Nepalese society as a much closed in matters related to sex and sexual activities. Obviously tourists are keen to learn about the reason behind having such scenes of various exhibitive postures being carved around temples. Some believe it is to ward off evil from the temples. Others believe it protects the temple from thunder strikes because thunderbolts would shy away due to these scenes. Some advocate that it must be a part of the strategy of the rulers to increase population. In those days the valley used to produce much more than it could consume and the external trade was very low. It could also be a very strong type of temptation that the devotees of lord Shiva are expected to overcome as to become a genuine worshipper. Whatever the reason may be, it surely makes people realize the level to which the society had been liberal in matters of sex in those days. In fact the whole theory of Tantrism is said to be based on the power of creation-sexual union which is an important aspect of Hinduism