I have to prove that Lipschitz condition is not satisfied for the function,
$$ f(x) = \begin{cases} {4x^3y \over x^4 +y^2}, & \text{if $(x,y) \neq (0,0)$ } \\ 0, & \text{if $(x,y)=(0,0)$ } \end{cases}$$
throughout any domain which includes $(0,0)$.
I considered ,the domain $D = \{(x,y) : |x| \le a , |y|\le b,a \gt b\}$, and then considered,
$$f(x,y_1)-f(x,y_2) = 4x^3\left[{y_1 \over x^4+y_1^2} - {y_2 \over x^4+y_2^2}\right]$$
How to proceed further?
HINT: $f$ is locally Lipschitz near the origin if and only if its partial derivatives are bounded near the origin.
For $(x,y) \ne (0,0)$ we have \begin{eqnarray*} \frac{\partial f}{\partial x}(x,y) &=& -\frac{4 x^2 y (x^4 - 3 y^2)}{(x^4 + y^2)^2}\\ \frac{\partial f}{\partial y}(x,y) &=&\frac{4 x^3 (x^2 - y) (x^2 + y)}{(x^4 + y^2)^2} \end{eqnarray*}
These expressions do not look much nicer but notice that \begin{eqnarray*} \frac{\partial f}{\partial y}(x,0) &=& \frac{4}{x} \end{eqnarray*}