Some good points made by everyone so far - a few additional comments:
- Insist on a pre takeoff engine failure and performance brief; stick with what you brief
- know your stall speeds and don't get within 2-3kts of them when asymmetric, (the point about feathering, and small bank angle can be made by showing the reduced rudder, you don't need to go slower than the first Vmc demo (or Vs+2))
- use sneaky fuel shut-off in the cruise, it causes surging and makes the stude analyse rather than just going through the drill (assuming they don't see you do it). Personally I don't see why this needs to be done over the airport - it's no different to pulling mixture to ICO
- don't simulate engine failure on the take-off roll - it's much too marginal, is bad for the engines and teaches nothing. Discuss it but don't do it.
- teach EFATO from a simulated take-off at 2000ft, or from a symmetric go-around at ach
- insist that the stude's hand is on the live throttle whenever it doesn't need to be (briefly) somewhere else
HFD