I guess I'll make an attempt to unveil the rules through play as you did. Here goes. The players are Dealer, Jim and Bob (Veterans) and Sue (Newcomer). Play works best with atleast four people and 3 decks of cards. Clockwise players are sitting Dealer, Bob, Sue, Jim.
Dealing is done randomly without purpose. Cards are dealt to players entirely out of order and some players are getting more cards than others. During the deal, Sue touches her cards to organize them and the dealer deals her an extra card and says "Touching Cards Before Play Begins" After the dealer has tired of dealing the cards, the remaidner of the deck is placed in the center of the four players. The dealer speaks "The name of the game is Mao. You will not know how to play. Play begins now, Play begins with you (Selects player - this game he points at Sue) and play is going in this direction (indicates direction) Which is to Sue's right. At this time Dealer turns over the top of the deck the 4 of hearts.
Almost immediately, dealer deals out a card to Sue. "Delay of Game" Sue says "What?" Dealer hands two more cards. "Stupidity." "Delay of Game." In her haste, Sue throws down the 5 of hearts.
Almost immediately, Jim starts repeating "Looking, thinking, waiting, looking, thinking, waiting, ..." And throws the Jack of Hearts.
Now it's Dealer's Turn to say "Looking, thinking, waiting, looking, thinking, waiting,..." He throws the Jack of Clubs.
Bob yells "Jacking Off" and deals two cards to dealer. He then says "Looking, thinking, waiting, waiting, waiting, waiting, playing" And he throws the 2 of clubs.
While Sue searches her hand for a card to play, Dealer deals her a "delay of Game" card. She says "What?" Another card for "Stupidity"
Jim tries to hint... "Looking, thinking waiting...."
Bob says "Helping" and deals Jim a card.
Sue catches on. And says Looking, thinking waiting.... And plays the seven of clubs.
Dealer deals a "Failure to name a Beatle" card.
Sue - "John Lennon?"
Sue receives another card "Incorrect Beatle"
Sue - "George?"
Jim starts saying looking thinking waiting. He plays the seven of spades. He says "Seven of Spades. John."
The dealer throws down the Ace of Spades He throws down his cards and says "Flying Swooping Ace of Spades. Doo Dah, Doo Dah!"
Bob yells "Doo Dah" but Jim and Sue remain silent.
Dealer deals a "Failure to Doo Dah" card to each of them.
Bob plays the eight of spades and says "Eight of Spades."
Sue throws the 2 of spades and says "Two of Spades." BUt She is dealt a "Playing out of Turn" card while Jim is dealt a "delay of game" and "stupidity" card.
JIm plays the six of spades and says "Six of Spades"
The dealer plays the 6 of diamonds.
Bob says "Oh @#%&!!!! It's my turn!"
Dealer deals Bob a "Profanity" and a "Delay of Game" and a "Stupidity" card.
Bob plays the six of diamonds.
Right away the dealer goes to play his card....
And the game goes on. It's hard to put all the rules in becasue there are so many, and one obviouse ommission is that of "Full Frontal Nudity". Here is an example.
Sue sets her cards down for a second, face up. Bob yells "Full Frontal Nudity!" And Sue is dealt a card.
After Bob plays his hand, he only has one card left. Jim yells "Failure to Call Uno" and Bob is dealt a new hand of seven cards.