Go to Start, All Programs, Accessories, System Tools, Disk Clean Up.
There will be options to delete the Temporary Internet file and many others that are not needed. Also, restart your computer once manually deleting files.
GO to Temporary Internet Files Folder > Click on Tool menu > Select Folder Option > Go to View tab > Select "Hidden files and folder" and Uncheck "Hide protected operating system files". U will see all hidden files. Select and delete those files.
Since, I didn't want to install a software to cleanup the files, I followed JayBeez's suggestion and it worked out. There were other files in Temporary internet files folder that didn't showup when you navigate to the directory manually.
but microsoft disk cleanup takes long time to clean up.. why not get CCleaner software? it free and plus they got some great features such as startup disable/enable, uninstaller softwares, clean registry, clean cookies, temp files and so on