1)kunoot - do we raise our hands up as in duaah, or keep them to the side? 2) sit after first 2 sajdas in the 1st rakaat before returning to the standing position for 2nd rakaat, Is this correct?

I have 2 questions concerning Salaat for a Hanafi. 1) These days especially, a lot of the Imams, in the last rakaat of Salaat right after rukhu (before we go into sajdah)are reciting kunoot. When this is done, do we raise our hands up as in duaah, or keep them to the side? And do we say Aameen softly as is done after Fatiha? 2) I notice that several brothers, particularly the Arab brothers, sit before returning back to the standing position in Salaat (i.e. if the Salaat is composed of 2 rakaat, they sit after their first 2 sajdas in the first rakaat before returning to the standing posiition for the 2nd rakaat). Is this correct? Or is it just because they are Shafee or Maalaki?