Hi the Davis Family and welcome to Pet Talk.

What your Lily is doing is definitley kneading - as the others have said. It's such a normal kitty thing to do- and she's happy.
Our Ketchum has his very own polar bear (stuffed) whom he loves to distraction - and boy does that bear get kneaded!!!
As I speak (...er - type?) he's on our bed doing just that - very happy boy!
Does Lily play in the house - I know she can't go outside, but the right sort of toys in the house will make her chase about and that should help her weight problem.

Let us know how she progresses please.


Lynne