The founding of this temple is interlinked with the lore of founding of modern Chanderi, when the Pratihara king Kirtipal is said to have witnessed the Miracle of Water. Although no inscription has been found to corroborate the date of its foundation, certain elements of the temple appear to belong to the 11th and possibly earlier centuries.
Situated on a hillside, the temple is reached by climbing a long flight of stairs from the foot of the hill. Another approach to the temple is the steep flight of stairs which descends from near the fort Kirti Durg. The main idol of the temple is the face of the goddess Jageshwari, which is located in an open cave. The modern temple has been built around the cave to accommodate the devotees who come for darshan and puja. Also within the temple complex are installed two large Shiva lingams whose surface is carved with 1100 lingams. Another lingam is carved with the faces of Lord Shiva on all four sides.
Several natural springs, whose water is considered sacred, flow down the cliff side near the temple. Shrouded in greenery, with sounds of birds, monkeys and cascading water, the temple has the atmosphere of being set deep within a forest.
After climbing up some distance on the stairs, on the left, is a pond which is referred to as Sagar and where the water of all the springs and streams is collected. Remains of four ancient temples have been found around this pond.