kathayām cakratuḥ - they discussed; gāthāḥ - topics; pūrvāḥ - of the past; guru-kule - in the school of their spiritual master; satoḥ - who used to reside; ātmanoḥ - of themselves; lalitāḥ - charming; rājan - O King (Parīkṣit); karau - hands; gṛhya - taking hold of; parasparam - each other's.

[Śukadeva Gosvāmī continued:] Taking each other’s hands, O King, Kṛṣṇa and Sudāmā talked pleasantly about how they once lived together in the school of their guru.