A quick search on Petco's petcare section says this:

"The right way to pick up and hold a cat: Place the right hand under the cat’s chest, cradle her bottom with the left hand, and carry her close to the body while supporting her feet."

Depending on whether you're right-handed or left handed .... I usually hold my kitties' back legs and bottom with my right hand and support their chest/front paws with my left hand which puts them in the perfect position to smooch their sweet little faces

I also sometimes cradle my cats in my arms as one would a baby. Mishi will tolerate this; Mitzi doesn't like being picked up or held for very long, but I keep triyng.