Legend of Shiv KhoriLegend has it that a demon named Bhasmasur, after a long meditation of Lord Shiva, obtained the boon that he could end the life of anyone by placing his hand on their head. After obtaining it, this devil had the evil intentions to end Lord Shiva.
A fierce battle took place between Lord Shiva and Bhasmasur at Ransoo (located near Shiv Khori Cave Shrine) which literally means a battle field. Bhasmasur did not budge from his evil designs and continued to fight Lord Shiva.
On seeing the evil in the demon, Lord Shiva choose to saved himself by entering the Shiv Khori Cave through the narrow entrance. The natural formation of the entrance was as such that Bhasmasur could not enter the Cave and was left outside.
In the meanwhile, Lord Vishnu, who was witnessing all this, decided to intervene, so as to rescue Lord Shiva. Lord Vishnu took the guise of Mohini and lured the demon to dance to her tune. The demon started dancing exactly as per the dance sequences of Mohini.
Another legend has it that a Muslim shepherd was once looking for his missing goat and accidentally stumbled upon this Cave. Curiously as he moved inside the Cave, he saw revered saints in meditation and felt deep respect for the cave. It is believed that Shiv Khori has been favorite among a number of saints who spent a lot of time inside the cave for spiritual enlightenment.
Later the shepherd shared the experience of the Holy Cave Shrine of Shri Shiv Khori with others and in the process worshiping started within the Cave. The Cave Shrine has been more popular recently after the Jammu & Kashmir State Government decided to setup Shri Shiv Khori Shrine Board and another reason is that it is geographically located close (70 kms approximately) to the famous Shri Mata Vaishno Devi Shrine.