Do Hindus Worship Idols?

The answer to this question is most certainly yes! Hindus do worship idols, but so do Christians, Jews and even Muslims. In fact, it is impossible to conceive of God without some form of idol, for idol worship is the way of religion. Let me explain.

In Hinduism there are many words to describe the nature of God, and we will refer to them as the need arises, but in this regard, the most relevant word is acintya, which means "inconceivable," "beyond thought." The true nature of God is, therefore, beyond the ability of human beings to understand, yet we have a need to reach out in our mind and try to conceive of God, so we create an image of God in our minds. This mental image of God is an idol. Most people, including Hindus, think of an idol solely as a graven or carved image and, while this is true, an idol is a carved image, it is also a form that begins in the mind. It is a mental form. Consequently, mental forms are also idols.

The Image of Father
With this in mind, perhaps the most common mental images that human beings use to conceive of God is as a Father, a King or a Mother. The idea of a father, a king or a mother is, therefore, a mental idol, a tool we use, to conceive of what is actually inconceivable, beyond thought. Convert that mental idol into a wooden or stone image and you have created a graven idol. From a Hindu perspective there is little difference between a mental idol and physical idol. One is just an extension of the other. And so, if you conceive of God as the supreme Father, or as the King of kings, or the divine Mother, you have created an idol, a material image with which to approach God. Human beings have no choice other than to approach God through these idols, even though all idols are simply crude and limited approximations of what God is in reality. Of all religions Hinduism seems the most adept at converting mental idols into physical form as graven idols, or what we prefer to call, sacred images. In fact, we generally teach our students not to use the word idol at all because it gives the wrong impression amongst many non Hindus. Indeed, Hindu temples are full of such sacred images of God and Hindus have special ways to install and interact with these images in their temples and homes, and in most cases these images are viewed, not as material images, but as spiritual forms. This is the result of seeing through faith.
Reference: http://www.sanskrit.org/www/Hindu%20Primer/idols.html