Does anybody the alignment of this railway. I know it ran through what now is a hotel in hawthorn and up to Glenfirie Oval but I don't know the rest of the route.
You're getting confused between three different lines. Two ran through Kew: the old Kew line, which ran from Hawthorn to Kew, and the Outer Circle, which ran from Hughesdale (near Oakleigh) through East Malvern, Ashburton, East Camberwell, Deepdene to Fairfield.
The Inner Circle ran from Royal Park through North Carlton and North Fitzroy to what eventually became a triangular junction, Rushall to the south-east (ultimately the "up" direction) and Merri in the north ("down"), on what was the Whittlesea line (now truncated to Epping). There was a short branch from North Fitzroy to Fitzroy.
I would suggest you go to http://pigfish.vic.cmis.csiro.au/~ajw/VRMaps/
and check out the maps. The 1890 version shows the southern section of the Outer Circle, and the 1900 the northern section. The Inner Circle existed in both of these, but the connection south from Rushall through Clifton Hill to Princes Bridge station in the City doesn't appear until 1910.
The Kew Line appears on the maps until 1950.
Now, which one of these lines are you interested in?