Bhaktapur is a clime where people celebrate the festival grandly within clouds of people. Just as in jatras. Or they celebrate it with a feast. But exceptionally, Shree Panchami is different than other festivals. In this festival, devotees prepare a simple pooja and have Prasada.
Yes, people do Saraswati pooja on that day. Especially, students organize and celebrate it more than anyone else. Because Saraswati is the goddess of knowledge. So, all the educational institutes along with students and teachers conduct this pooja.
Besides that, people also prefer to go to saswo: dega ( Saraswati sthan). It is a small temple. Yet, people prefer to go there walking. It lies outside the Bhaktapur municipality.
Eventually, Buddhist people also go over there to worship Maha Manjushri. There is a belief that he is the incarnation of lord buddha. Also, the day is considered a fortune day to start any new business.
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