After a little bit of Googling, I've finalized on the following modes of travel:
1a. Amritsar to Pathankot by bus.
1b. Pathankot to Kangra by toy train.
1c. Kangra to Dharamsala by bus.
2. Amritsar to Dharamsala by bus.
If someone could let me know the cost of each, that would be perfect. We are a group of students and would prefer the cheapest option.