Proof: Let $\varepsilon>0$ be given.
For our proof we need to find $\delta>0$ such that $0<\sqrt{x^2+y^2}<\delta\to|\frac{xy}{\sqrt{x^2+y^2}}-0|\lt\varepsilon$
$x\le\sqrt{x^2+y^2},\,\,\,\,\forall x,y\in\mathbb{R}\to\frac{x}{\sqrt{x^2+y^2}}\le1,$
which implies$\frac{x|y|}{\sqrt{x^2+y^2}}\le|y|\le\sqrt{y^2}\le\sqrt{x^2+y^2}$, which is our condition for $\delta$.
So if we let $\varepsilon=\delta$ and $0\lt\sqrt{x^2+y^2}\lt\delta$, we have that:
$|\frac{xy}{\sqrt{x^2+y^2}}-0|\le\sqrt{x^2+y^2}\lt\delta=\varepsilon.$
So by definition of the limit, $\lim_{(x,y)\to(0,0)}\frac{xy}{\sqrt{x^2+y^2}}=0.$