Hello Girish,
The Image Cache folder will contain actual images. This can be achieved after publishing the desired publication into the Adobe InDesign.
You can see (or set this folder) from the InDesign Menu bar - MDM > Image Cache > Set Folder...
Note that this action requires families and creating spreads. In my opinion, it is exhausting process just to fetch the images from the MDM repository.
Data Manager is the best way for this action.
Go to Images table and filter the images by Data Groups. Then select all records(images) in the
Records pane and right-click > Save Original to Disk...
btw, can you point me to the posts where it is said that images can be saved using MDM Publisher?
(i'm just curious to see it.. 
)
Cheers,
Yonatan
