Consider the following passage in Matthew 1:23:
“Behold, the virgin shall be with child, and bear a Son, and they shall call His name Immanuel,” which is translated, “God with us.” [1]
This is a quotation from Isaiah 7:14. The Lord told king Ahaz to ask a sign, but Ahaz refused. The Lord then gave Ahaz a sign of His Own devising, which is a clear prophecy of the Messiah as recorded by Matthew.
This quotation from the Old Testament is taken literally by Matthew, as a virgin actually conceived a child, and gave birth to a Son. The Lord Jesus is never directly referred to as or called Immanuel specifically in the scriptures, but it is quite clear that He is God manifested in the flesh, so the title is quite apt.
Literal interpretation best fits this passage.
[1] New King James Version, 1982, Thomas Nelson, Inc.
Thinking About The Truth 