I found a solution to my problem. TelNet needs to be enabled in Windows, before you can use it. It is disabled by default I believe. This site has step-by-step instructions for enabling it (it works for all versions of Windows - Vista - 7 - 8 - 8.1). Once TelNet CLIENT is enabled:
- Go to --
C:\Program Files (x86)\Android\android-sdk\tools
- SHIFT + RIGHT CLICK on an empty space
- Click
'Open Command Window Here'
- Type in
'telnet localhost 5554'
(port of emulated device)
Now you should be connected to the Emulated Android device through TelNet.