How was Islam viewed in the medieval Europe? Was it considered like any other religion or was it respected, given that Christ is held in high esteem in Islam and a whole chapter in Quran narrates the story of the virgin Mary.

There's a lot that can be said about this (it's a huge topic!) but I've answered a couple of similar questions that might help you get started:

Why and when did Westerners stop to refer Muslims as Mohammedans? (see also u/persimmonmango's comment there)

I'm a Crusader heading towards the Holy Land in 1096. How much do I understand about Islam?

Very brief summary: medieval Europe knew absolutely squat about Islam. They thought it was a Christian heresy or a kind of paganism at best, or, at worst, literally created by Satan. Even in places where Muslims and Christians lived together and interacted daily, they didn't really know anything about Islam and they didn't really care to learn.