Plasma flow physics in magnetic nozzles must be clearly understood for optimal design of plasma propulsion devices. An order of magnitude analysis of the governing equations reveal: i) most magnetic nozzles under consideration operate at the edge of the continuum regime rendering continuum-based description and computation valid; ii) in the context of MHD framework, the generalized Ohm's law must be used to capture all of the relevant physics. Next, we continue the development of the Magneto Gas Kinetic Method (MGKM) computational tool. Validation of the code is performed in shock-tube flows with Hall effects, Hartmann channel flows with Hall effects, and simple jet configurations. Comparison with theory and available data is made whenever possible. The preliminary results are encouraging and further challenges are identified. © 2012 by the American Institute of Aeronautics and Astronautics, Inc. All rights reserved.