1. The hours you choose depend on your kids, and what you want. I would think for working, I would do a straight 9 - 5. I paid our nanny $11 an hour, I know it can be anywhere from $10 - $15. We gave her a check every week. I know some people have their nannys as W2 employees and pay healthcare and benefits and everything.
2. If you provide a car, you might need to add the nanny to your insurance. When we had our nanny, she had her own car. Many people I know do have their nanny use their car.
3. I always had food in the house for the nanny and kids. I always made sure she knew my house was her house. She also very often brought things from home. She cooked lunch for the kids and when they had not eaten breakfast before she came, made breakfast. Sometimes she made dinner for them and for us. I never asked her to, she was just a good cook, and did that sometimes. Sometimes I had food pre-made. I never did meal planning for her, but would let her know if there were things made in the fridge.
4. I did not specifically go buy crafts and games etc. We have all that stuff in the house, and I made sure the nanny knew where all the art supplies were and that I wanted my kids to do things like playdoh and watercoloring and painting and crafts etc and she did all that with them.
5. I am not sure about "must ask" questions other than your own comfort level.
We had our nanny for 4 years, I absolutely loved her. She was referred through my grandma's cleaning lady who had worked for my grandma for 30 years. It was a woman she knew through her church, who had 2 children in middle school, and was a nanny for a little girl from birth through 6 years old, and now that the little girl was in school, she needed a new job.
Our nanny had a routine with the kids that worked great. She took them out every day, I had memberships to the children's museum and the zoo etc that she was included on, and she took them to the playground and in the winter time to the indoor playplace at the mall, or chuckee cheese, or to mcdonalds etc.
I made sure to give her money for outings with the kids, but most of the time she packed lunches and was not spending alot of money. We knew each other well enough that in the summer she brought her 2 kids with her sometimes so they were not alone all the time, and my little ones loved playing with them. When she did, she was extremely scrupulous about bringing her own food, and enough for my kids as well, even though I told her not to worry about it.
We went to her house a couple of times as well, and knew her entire family.
I miss her but am very happy that I am working from home part time now, and am with the kids all the time. BTW I never had a full time nanny, we started 2 days a week and moved up to 3.