Windows 7.
Cakewalk 8.5
Kontakt Komplete 10
 
When use "Insert SoftSynth" (which in most cases will be Kontakt), I get a Sonar track that works exactly the way I would want it to. It records MIDI, but I can convert it to Audio with "freeze" when I like. Kontakt opens, and I can choose a sound to use, whose outputs a routed to the Sonar track.
 
If I do that several times. opening a new instance of Kontakt each time, it works the same way on each track, but I have opened Kontakt several more times. I understand that that eats up CPU resources, so I'd like to avoid it.
 
I have been able to insert MIDI tracks, which I can use to record MIDI that plays other instruments on ONE instance on Kontakt, which is what I want. However, their actual audio all comes out of the same (stereo) Sonar track; the first "softsynth" track I created. The other tracks show the MIDI notes I record on each instrument, and their faders even seem to work - presumably via MIDI Volume - but the actual audio comes from the one Sonar track. If I mute that track - intending to mute only the first Kontakt instrument, all of the audio disappears. Presumably I cannot do any Sonar or plug-in processing either. When I solo any of the Kontakt tracks, they all solo together.
 
I tried using Kontakt in 1 track, 5 track and 16 track modes. I tried adding output channels in Kontakt, but I can't seem to route them anywhere.
 
I have tried changing one of the MIDI tracks to an "Instrument" track. That has also been unsuccessful.
 
Is there a way to do what I want, or must I open many instances of Kontakt?

I use the synth rack and I set the outs to all stereo on the dialog. There are different versions of Kontakt that show 8 16 and all outs. By using the Synth Rack you will get a MIDI track if you want and a bunch of audio tracks.
 
Do not use a Simple Instrument track. You can only have one out with that. Once Kontakt is up and loaded you will need to setup the internal mixer for routing instruments to tracks. You will need to add tracks to the mixer if its not showing click on the icon for it. Once you have the number of mixer channels/tracks you want you can save that setup as a preset for the mixer. I am talking about the internal mixer of Kontakt not Sonar's Console View. With each instrument there will be a MIDI channel and an audio out. You will need to set each to its own unique MIDI channel and its own audio out of the Kontakt internal mixer.   
 
If you have more questions please ask. 

Hello  John,
I have similar problems. As you are saying there are different versions of Kontakt 5, at least different outputs. Opening Plug-in Mgr in Sonar, I see that NI Kontakt 64 is the .dll If I open this in  Program Files, I see that under VSTPlugins 64 bits I have Kontakt5 16 out.dll (51 kb) .and Kontakt 5. dll (64217 kb). Trying to add in Plugin Mgr the 16.out.dll will not work, only the VSTPlugins 64 shows up. 
But, and here is my problem, in Kontakt I have only 4 pairs of outputs available, they show up as Kt St 1 1/2  up to Kt St 4 1/2.  Trying to learn from the available videos, no one mentions this problem, when they open Output in Kontakt, adding say 15 channels, they enter into the "Soundcard.host" window the first pair of Kt aux st 1   1, they select this as default and they have all the channels available. 
I am trying all sorts of ways, re-loaded Kontakt 5  and loosing my patience with Kontakt 5 "service".
Could you please help?
 
Ted
 

I am sorry John:
Windows 7, Sonar Professional, Lexicon Alpha, Kontakt 5, GPO.5, 8 G Ram.
 

To make your answer simpler, I had a breakthrough, managed to get the available outputs up to 8 pairs of stereo! By making changes in Plug in Mgr, I was able to change the output channels to 16. Unfortunately, when I tried to go 32, Sonar crashed. 
So, do you know if the 32 out or 64 out is available in Kontakt 5, and if yes, how can I get such VSTplugin from NI, or this is a limitation somehow in Sonar, restricting us to 16 outs?
 
Thanks 

16 stereo or 32 mono is the limit for the VST inside of a host.
Here's how I do it. If you get this happening you'll never go back to the confusion.
http://forum.cakewalk.com/FindPost/3619624