Kitty and Buddy setting up computer
I believe the answer is:
lap-top
'computer' is the definition.
(I've seen this before)
'kitty and buddy setting up' is the wordplay.
'kitty' becomes 'pot' ('pot' can be a synonym of 'kitty').
'and' says to put letters next to each other.
'buddy' becomes 'pal' ('pal' can be a synonym of 'buddy').
'setting up' says the letters should be written backwards.
'pot'+'pal'='potpal'
'potpal' backwards is 'LAP-TOP'.
(Other definitions for lap-top that I've seen before include "Portable PC" , "Portable computer, used while travelling" , "Small portable computer" , "Portable computer, sits on knee" , "Kind of computer" .)