I was able to process devanagari-documents into PDF successfully a couple of years ago on my Mac. I tried processing a simple document with xelatex but it doesn't work. My document is:
\documentclass{article}
\usepackage{fontspec}
\begin{document}
\setmainfont[Script=Devanagari]{Nakula}
नमस्ते रुद्र मन्यवे
\end{document}
Below is an image of all the fonts that are installed on my Mac (running Sierra 10.12.1)
Here's log file displayed in TeXshop's console:
This is XeTeX, Version 3.14159265-2.6-0.99992 (TeX Live 2015) (preloaded format=xelatex)
restricted \write18 enabled.
entering extended mode
(./Untitled.tex
LaTeX2e <2015/01/01>
Babel <3.9l> and hyphenation patterns for 79 languages loaded.
(/usr/local/texlive/2015/texmf-dist/tex/latex/base/article.cls
Document Class: article 2014/09/29 v1.4h Standard LaTeX document class
(/usr/local/texlive/2015/texmf-dist/tex/latex/base/size10.clo))
(/usr/local/texlive/2015/texmf-dist/tex/latex/fontspec/fontspec.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/l3kernel/expl3.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/l3kernel/expl3-code.tex)
(/usr/local/texlive/2015/texmf-dist/tex/latex/l3kernel/l3unicode-data.def)
(/usr/local/texlive/2015/texmf-dist/tex/latex/l3kernel/l3xdvipdfmx.def))
(/usr/local/texlive/2015/texmf-dist/tex/latex/l3packages/xparse/xparse.sty)
(/usr/local/texlive/2015/texmf-dist/tex/latex/fontspec/fontspec-patches.sty)
(/usr/local/texlive/2015/texmf-dist/tex/latex/fontspec/fontspec-xetex.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/base/fontenc.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/euenc/eu1enc.def)
(/usr/local/texlive/2015/texmf-dist/tex/latex/euenc/eu1lmr.fd))
(/usr/local/texlive/2015/texmf-dist/tex/xelatex/xunicode/xunicode.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/tipa/t3enc.def
(/usr/local/texlive/2015/texmf-dist/tex/latex/euenc/eu1lmss.fd))
(/usr/local/texlive/2015/texmf-dist/tex/latex/graphics/graphicx.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/graphics/keyval.sty)
(/usr/local/texlive/2015/texmf-dist/tex/latex/graphics/graphics.sty
(/usr/local/texlive/2015/texmf-dist/tex/latex/graphics/trig.sty)
(/usr/local/texlive/2015/texmf-dist/tex/latex/latexconfig/graphics.cfg)
(/usr/local/texlive/2015/texmf-dist/tex/xelatex/xetex-def/xetex.def))))
(/usr/local/texlive/2015/texmf-dist/tex/latex/fontspec/fontspec.cfg)))
(./Untitled.aux) (/usr/local/texlive/2015/texmf-dist/tex/latex/tipa/t3cmr.fd)
[1] (./Untitled.aux) )
Output written on Untitled.pdf (1 page).
SyncTeX written on Untitled.synctex.gz.
Transcript written on Untitled.log.
I also tried setting the font type to "Devanagari MT" but that didn't work either.
Update:
I downloaded and installed texlive-2016 and re-ran my file through xelatex. Now it produces a meaningful error Font 'Nakula' does not contain script 'Devanagari'.
This is XeTeX, Version 3.14159265-2.6-0.99996 (TeX Live 2016) (preloaded format=xelatex)
restricted \write18 enabled.
entering extended mode
(./Untitled.tex
LaTeX2e <2016/03/31>
Babel <3.9r> and hyphenation patterns for 83 language(s) loaded.
(/usr/local/texlive/2016/texmf-dist/tex/latex/base/article.cls
Document Class: article 2014/09/29 v1.4h Standard LaTeX document class
(/usr/local/texlive/2016/texmf-dist/tex/latex/base/size10.clo))
(/usr/local/texlive/2016/texmf-dist/tex/latex/fontspec/fontspec.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/l3kernel/expl3.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/l3kernel/expl3-code.tex)
(/usr/local/texlive/2016/texmf-dist/tex/latex/l3kernel/l3xdvipdfmx.def))
(/usr/local/texlive/2016/texmf-dist/tex/latex/l3packages/xparse/xparse.sty)
(/usr/local/texlive/2016/texmf-dist/tex/latex/fontspec/fontspec-xetex.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/base/fontenc.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/euenc/eu1enc.def)
(/usr/local/texlive/2016/texmf-dist/tex/latex/euenc/eu1lmr.fd))
(/usr/local/texlive/2016/texmf-dist/tex/xelatex/xunicode/xunicode.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/tipa/t3enc.def
(/usr/local/texlive/2016/texmf-dist/tex/latex/euenc/eu1lmss.fd))
(/usr/local/texlive/2016/texmf-dist/tex/latex/graphics/graphicx.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/graphics/keyval.sty)
(/usr/local/texlive/2016/texmf-dist/tex/latex/graphics/graphics.sty
(/usr/local/texlive/2016/texmf-dist/tex/latex/graphics/trig.sty)
(/usr/local/texlive/2016/texmf-dist/tex/latex/graphics-cfg/graphics.cfg)
(/usr/local/texlive/2016/texmf-dist/tex/xelatex/xetex-def/xetex.def
(/usr/local/texlive/2016/texmf-dist/tex/generic/oberdiek/infwarerr.sty)
(/usr/local/texlive/2016/texmf-dist/tex/generic/oberdiek/ltxcmds.sty)))))
(/usr/local/texlive/2016/texmf-dist/tex/latex/fontspec/fontspec.cfg)))
(./Untitled.aux) (/usr/local/texlive/2016/texmf-dist/tex/latex/tipa/t3cmr.fd)
*************************************************
* fontspec warning: "script-not-exist"
*
* Font 'Nakula' does not contain script 'Devanagari'.
*************************************************
[1] (./Untitled.aux) )
Output written on Untitled.pdf (1 page).
SyncTeX written on Untitled.synctex.gz.
Transcript written on Untitled.log.





\expandafterline (and/or hit Enter at the prompt in TeXShop's console to make the compilation complete). – ShreevatsaR Dec 21 '16 at 20:31catthe file, I saw a bunch of ??? instead of devanagari letters. I added a line at the top of my file (as per http://tex.stackexchange.com/questions/46199/texshop-doesnt-remember-file-encoding) and now I finally see devanagari in my pdf! Thanks @ShreevatsaR and all others for your help – linuxfan Dec 21 '16 at 21:05