The medium that you pick should be available for review to both manager and employee.
A Google Doc shared between you and your report accomplishes this well.
In theory, you could use paper to capture information, but you'll have to store it securely.
The manager does all of the administrative work.
What's being written should be plain, understandable, and agreed to by both manager and employee. Specific wording won't be controversial if you both agree on the big idea behind an answer to a quesetion.
Spend at least 30 minutes going through questions. If you run long and have to cut it short, schedule a follow-up soon after and next time schedule 45 minutes.
Avoid spending more than 45 minutes-- each person should come with ideas to discuss in advance and the focus should be on determining a plan for the month ahead and going forward.