When the step showing thingy says that the step is Draw, you and your friend can draw the arena. Press Q to clear your drawing. Press space to continue. When the step is Place Characters, place your characters where you want them to be placed when the game starts. Drag them around to do so. Press space again to continue. When the step is fight, FIGHT! Whoever is playing red cat will use the WASD keys. W will make you jump, A will move you left, S will make you attack, and D will move you right. For the yellow cat, you use up arrow to jump, left arrow to move left, down to attack, and right to move right.
I used all of the ideas from Draw and Run.