Click the toy to hold it, and click it again to drop it. Wait for your dwaf to need something. If he needs medicine, keep the medicine on him until he starts reacting (YUCKY). To clean up poop, you can use a cloth or just swipe your mouse over it.
You can find another dwaf virtual pet somewhere in my profile, except for this one it poops way less often and it's like a real pet. You don't need to look at it constantly.