2 Added the figures from the Russian description.

The square case was posed as a problem at Leningrad (now St. Petersburg) high school math olympiad in 1963. I wrote a solution of this problem for the volume "St. Petersburg mathematical olympiads 1961-1993", D.V.Fomin, K.P.Kokhas eds., Lan' Publ. 2007 (in Russian), it is Problem 63.31 in that book.

Here is the original very detailed draft of the solution from my archive (only a sketch made it into the final book). It is in Russian but the pictures and formulae might be enough to follow the proof. Up to elementary but cumbersome case chasing, the solution is the following.

Consider the boundary of the twice bigger square with the same center and parallel sides. It is a broken line of length 8. It turns out that each of the kissing squares takes away a piece of length at least 1 from this broken line. Hence there are at most 8 kissing squares (and furthermore one analyse the equality case).

(Snapshots of the figures added by J.O'Rourke)

The proof of the fact that the length of the intersection is at least 1 is essentially an exhaustion of cases, each of which is trivial. It is helpful to observe that the length of the intersection is a piecewise linear function of the relative position of the squares (if the orientation is fixed), so one has to consider only "borderline" positions (i.e. those where one of the corners is on one of the lines). This leaves about 10 cases to consider.

1

The square case was posed as a problem at Leningrad (now St. Petersburg) high school math olympiad in 1963. I wrote a solution of this problem for the volume "St. Petersburg mathematical olympiads 1961-1993", D.V.Fomin, K.P.Kokhas eds., Lan' Publ. 2007 (in Russian), it is Problem 63.31 in that book.

Here is the original very detailed draft of the solution from my archive (only a sketch made it into the final book). It is in Russian but the pictures and formulae might be enough to follow the proof. Up to elementary but cumbersome case chasing, the solution is the following.

Consider the boundary of the twice bigger square with the same center and parallel sides. It is a broken line of length 8. It turns out that each of the kissing squares takes away a piece of length at least 1 from this broken line. Hence there are at most 8 kissing squares (and furthermore one analyse the equality case).

The proof of the fact that the length of the intersection is at least 1 is essentially an exhaustion of cases, each of which is trivial. It is helpful to observe that the length of the intersection is a piecewise linear function of the relative position of the squares (if the orientation is fixed), so one has to consider only "borderline" positions (i.e. those where one of the corners is on one of the lines). This leaves about 10 cases to consider.