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Yeah it's the title for one who rules Outworld.
Originally after Shao Kahn was taken captive for punishment by the Elder Gods in 9, Mileena took the title of Kahn until Kotal caused a mutiny against her and ousted her from Kahn-ship. Kotal then took the title to become Kotal Kahn.
This is what drove Mileena in MK X -- to reclaim the title of Kahn from Kotal at any cost.