Sushi, your story really made me smile.
Once I took care of a kitten while his owner was away on her holiday and I had my Hobbes with me. Hobbes was so sweet with the little guy, did exactly the same thing, hugging, licking his little head etc... I love cats, too!!
Trish, about Lily's toilet training, you already got good advices, yeah, it will take some patience but she will get the message sooner or later. It is just a little more difficult for her to adjust to a different life style, after living outdoors for so long. As Sushi pointed out though, she may be a bit sad about being cooped up indoors, how about a little daily play time out side while you watch her?