$$(\forall y > 0 ~ \exists r > 0 ~ \forall \bar x )~ 0 < | \bar x - \bar c | < r \implies |f \bar x - L| < y$$
$(\forall y > 0 ~ \exists r > 0 ~ \forall \bar x )$ is equivalent to asking for the existence of a function $g$ that, given a maximum deviation from $L$, outputs the neighborhood $r$ that satisfies that maximum deviation. In other words, find the disc centered at $\bar c$ with radius $g(y)$ such that every value of $f$ within that region is within $y$ of $L$. Symbolically:
$$(\exists g : \mathbb R \to \mathbb R ~\forall y > 0 ~ \forall \bar x) ~ 0 < | \bar x - \bar c | < g(y) \implies |f \bar x - L| < y$$
Putting in the values for your problem:
$$(\exists g : \mathbb R \to \mathbb R ~\forall y > 0 ~ \forall \bar x) ~ 0 < | \bar x | < g(y) \implies \left|\frac{x_1{}^3 - x_2{}^3}{x_1{}^2 + x_2{}^2}\right| < y$$
or to put more tersely, find $g : \mathbb R \to \mathbb R$ such that for $\bar x \ne (0, 0)$
$$|\bar x| < g(y) \implies \left|\frac{x_1{}^3 - x_2{}^3}{x_1{}^2 + x_2{}^2}\right| < y$$
A polar substitution helps:
$$r < g(y) \implies \left|\frac{(r\cos t)^3 - (r\sin t)^3}{(r\cos t)^2 + (r\sin t)^2}\right| < y$$
Can you find the $g$ now? One more hint if you need it:
$-1 \le \cos t, \sin t \le 1$