I have an app in Node.js using Expressjs and Handlebars as the template engine.
Expressjs uses layouts and then renders views. The layout (layout.hbs) looks like th
Yup, it's a sticky problem --- kind of like the quoting problems in shell scripts which become a rats' nest of quoted quotes.
My solution is to use jade (a la haml) in expressjs (server-side) to output handlebars based templates for the client. This way, the server uses one syntax (jade), and the client uses another (handlebars). I am at the same crossroads as you, so I have the same challenge.
Of course, jade is not essential (though it's ready-made for expressjs). You could choose any (non-handlebars) template engine for the server, and/or you could use handlebars on the server with your non-handlebars templating on the client --- as long as the two syntaxes of your chosen templating engines do not collide. Since I'm using emberjs on the client and it uses handlebars syntax (by default), I prefer using emberjs + handlebars syntax on the client. So expressjs + jade became a natural fit for the server.