While scholars try to portray a confrontational relationship between Buddhism and Hinduism, many facts point to the fact that they just co-existed. The book I am reading, Massacre at the Palace: The Doomed Royal Dynasty of Nepal has some information on the relations between Hindus and Buddhists in Nepal.
The Newars of Nepal developed a kind of Buddhism quite different from that practiced elsewhere. As Buddhists they were allowed to eat meat including buffalo and the pig. The Newars could have a Brahmin as a priest and Hindus would worship in Buddhist shrines. The Shiva temple at Pashupathinath has a strict prohibition on entry by non-Hindus, but Newars are allowed to enter.
There is a festival of the Hindus involving a Kumari, who is considered a living godess. In Indrajatra, she is pulled on a chariot through various parts of Kathmandu and she gives blessings to the King who is considered a partial reincarnation of Vishnu. This Kumari who features prominently in the Hindu festival is chosen from the Buddhist priestly clan of Sakyas (the same clan as Buddha).
Hindus and Buddhists in Nepal
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