My cat loves being held (he will come beg to be picked up and will throw a tantrum if I refuse) and he likes me to hold him similar to how you would hold a baby you would be trying to burp. I scoop him up so he is facing my torso with his head at my chin level, front paws on my shoulder, and one of my arms is under his butt and back legs supporting them in a sitting position and my other arm is free to either pet him or wrap around his back and hug him. He loves being hugged tight or snuggled and pet.

My other cat doesn't like being held nearly as much, but I've found that this is also the position that she's happiest in. She feels physically supported and also still has autonomy to look around and move and can easily signal to me when she wants down.