Whats the most realistic way to simulate contact for Thermal Analysis ( just conduction), I have tried the 1) tie constraint between the two parts 2) the surface contact in the interaction module.
There is usually thermal resistance between contacting bodies that limits the thermal conductivity. In one extreme you'll have perfect contact and thus thermal conductivity between the two bodies. In the other extreme there will be no thermal conductivity and heat flow will be via thermal radiation across a small gap. Between these two extremes you'd need to know more about the thermal resistance in contact, ie. its dependency on the contact pressure, etc. The better option is to go for one of the two extremes outlined, choosing one which will give you the worst possible utcome that you are trying to model.