1. Which PF side of MAO should I get out through? - I always went to the main side (PF 1), thats where the action is - prepaid taxi, agents offering tours / hotels, scooters, rental taxis etc. Cabs may be cheaper on PF 4 side, but I am not sure if they have a stand there or if you will have to hail a taxi from the road.
2. KTC services: Once you get to KTC stand, you might find various decent local buses (direct/via) to Palolem or Cancona. But the stand is quite away from MAO - around 2 kms. You would need a rikshaw ride to bus stand which might cost you in excess of 100-150 (30-50 rs if...
more... you are a local)
3. Renting a scooter - Not a bad option. You will be encountering 20 agents as soon as you step out of PF 1 - offering scooters et cetera. DO NOT pay a rupee unless you have negotiated enough (Non-peak rates 300-350 per day- Activa, 400-500 bullet or similar in non-peak season, add 100-150 more in peak season) AND throughly inspected the vehicle yourselves - watch out for worn out tyres, how old the vehicle is, helmets, brakes, head & tail lights, indicators, horn, scratches etc. (take photos or make a video and whatsapp the owner immediately). Not sure how large your bags are and if they are trolley bags or backpacks. It will be really tough (if not impossible) for 2 or more people with 2 trolleys to travel 35 kms to Palolem (and back for return journey)
I suggest take taxi / bus / passenger train to Palolem and hire a bike there. - rental rates for bikes are 30-40% cheaper at beaches as compared to MAO or bus terminals.