"Hanako and I" here.Hanako and me met with her in her room to relax and spend some time together while she got settled back in.
"Lilly's decision" since it is possessive. Plus, there's only one Lilly.I'm not sure of Lilies decision yet, but I am sure that is weighing heavily on her mind.
I'm pretty sure you mean "hangs up" here.She hands up and the line goes silent.