Hitchhiking is the fastest, cheapest and easiest option for locals and visitors in the area. The main hitchiking hub is in the southern exit from Jerusalem, a place called "Tzomet HaMinharot". Any time between 6am and 5am, you're likely to be picked up by a Kippa-wearing, smiling nice guy which will take you for this 15 minutes ride.
Another option is to take the Egged buses. Leaving from central station in Jerusalem, lines 161 and 164 leave every 30-60 minutes to Neve Daniel and other settlements in the area. get down on the first stop - or just ask the driver. They are also stopping in the far side of Tzomet HaMinharot- don't forget to wave the driver!