The easiest solution to this particular problem would have been to add another function within the module that would have stored the cursor in a variable global to the module. Then all the other functions could use it as well.
module1:
cursor = None
def setCursor(cur):
global cursor
cursor = cur
def method(some, args):
global cursor
do_stuff(cursor, some, args)
main program:
import module1
cursor = get_a_cursor()
module1.setCursor(cursor)
module1.method()