The question is the following:
I wanted to solve this question using the AM-GM inequality first and then trying to prove using cases. However, I am not exactly sure how to proceed.
What I have done so far (for the proof involving AM-GM):
I tried squaring both sides of the inequality (twice) to somehow make a use of the AM-GM inequality for two variables ($\frac{a+b}{2} \ge \sqrt{ab}$), and that is what I have tried doing: $$(x-2\sqrt{xy}+y)^2 \leq (|x-y|)^2$$ $$x^2+6xy+y^2-4x\sqrt{xy}-4y\sqrt{xy} \leq x-y$$
However, this didn't really help me much in finding the desired values of $a$ and $b$ to make the AM-GM inequality work. Could someone perhaps point me to the right direction?
Thanks!

The RHS is not multiplied out correctly
Squaring both sides twice.
$(x + y - 2\sqrt {xy})^2 \le (x-y)^2\\ x^2 + y^2 + 6xy - 4x\sqrt {xy} - 4y\sqrt {xy} \le x^2 - 2xy + y^2$
$8xy \le 4(x+y)\sqrt {xy}\\ (xy)^\frac 12 \le \frac 12 (x+y)$
Which is AM-GM
Or you could use the hint, and only square both sides once.