as others already mentioned, the key to cavalry is to charge with them, and then as soon as the impetus of their charge is blunted, double-click them either back the way they came (if the enemy is tightly bunched and standing strong) or straight on thru the enemy unit (if the enemy is loosely formed and/or wavering morale)
often times you may think your cavalry has failed to break the enemy with their charge, but telling them to move thru the enemies formation and out the other side will destroy the enemy morale - which is pretty nice actually to see that the game models shock of the formation being dissolved just as much as actual casualties being taken
if its a particularly sturdy infantry unit however, you need to move back the direction you came so your cavalry don't get bogged down trying to force their way thru and slaughtered... there aren't many units that can take more than two charges, with the second charge followed up by the cavalry forcing their way on thru and out the backside of the formation
oh - and war elephants are absolutely deadly if you can get them into melee with the enemy... they can easily destroy an entire line of battle by themselves by always clicking onto the next unit as soon as the charge against one is finished - i've found that camels pretty much suck however for anything other than scaring horses
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