The original definition of the partial derivatives is on a point-by-point basis. In case the limit exists, the partial derivative with respect to$x$ of a function $f \colon \mathbb{R}^2 \to \mathbb{R}$ in a point $(x,y)$ is defined as
$$\lim_{h\to 0} \frac{f(x+h,y) - f(x,y)}{h}.$$
In the origin, we have to find the partial derivatives of $f$ by the definition. Using the difference quotient
$$\frac{f(x,0) - f(0,0)}{x} = \frac{1}{x}\left(\frac{x\cdot 0}{\sqrt{x^2+0^2}} - 0\right) = \frac0x = 0,$$
we determine $$\frac{\partial f}{\partial x}(0,0) = 0; \quad \frac{\partial f}{\partial y}(0,0) = 0$$
similarly. In points $(x,y) \neq (0,0)$, we have $f$ given by an analytic expression in a neighbourhood of the point, hence there we can obtain the partial derivatives using the chain and quotient rules in a uniform way, obtaining
$$\frac{\partial f}{\partial x}(x,y) = \frac{y^3}{(x^2+y^2)^{3/2}};\quad \frac{\partial f}{\partial y}(x,y) = \frac{x^3}{(x^2+y^2)^{3/2}}.$$
Thus we see that the partial derivatives exist everywhere, but they are not continuous in the origin, we have $\frac{\partial f}{\partial x}(0,y) = \pm1$ for $y \neq 0$, and $\frac{\partial f}{\partial y}(x,0) = \pm1$ for $x\neq 0$.
We can have the same phenomenon also in the one-dimensional setting, the function
$$g(x) = \begin{cases}x^2\sin \tfrac{1}{x} &, x \neq 0\\ \quad 0 &, x = 0 \end{cases}$$
is differentiable on all of $\mathbb{R}$, but its derivative
$$g'(x) = \begin{cases}2x\sin \tfrac1x - \cos \tfrac1x &, x \neq 0\\ \qquad 0 &, x = 0 \end{cases}$$
is not continuous at $0$.
HINT: substitution rule.
– Don Larynx Oct 05 '13 at 14:13