RE: How do you teach?
This all depends on where the student is at that point. If a real beginner, meaning has never flown before, well, of course, the instructor takes the plane off then climbs to "three mistakes high" and describes to the student what he had told him before the flight began.. what they were going to do for that flight.
Usually, it is orbits. Right turns, many of them, then left turns.. many of them.
The instructor watches the aircraft intently to make sure that what is going on is what is supposed to be going on. If something happens, the instructor releases the button and takes over saying "I have the aircraft", makes the correction, explains what happened, then says, "OK, Captain.. it's your plane" or words to that effect.
If the student is beyond orbits, then perhaps figure eight maneuvers are in order. The instructor watches, again watches intently to make sure that the student is doing what he/she is supposed to be doing, but takes control when a problem arises.
The point is, the instructor watches the plane and offers some advice or instruction, softly and purposefully, so that the instructor does not cause the student any more anxiety than he/she already has. But, watching the plane all the time, not the student. The point is to make sure the student follows the point of that instructionional flight and that the plane (and anything or anyone around at the time) is safe.
CGr.