You're teaching your daughter to swim. You're holding her in the water, and you say this to get her to move her arms and legs.
Now — paddle your arms and kick your legs!
Now —
When you're giving instructions to someone, you can say "Now —" at the beginning of a new step in the instructions. For example, if you're teaching someone how to bake cheesecake:
Now — mix all that up for a minute or two, until it's nice and thick.
You usually only use this in spoken English. In writing, you start a new step with "Next," or "Then..."
paddle (one's) arms
To "paddle" in the water means to hold your fingers together to make a cup shape, and move your hands back and forth. This is the way that most children are first taught to swim. This style of swimming is called "the doggy paddle".
A paddle is a stick with a wider flat part at the end, like what you would use in a small boat. This is where the verb "to paddle" comes from.
kick (one's) legs
You can "kick (something)", like kicking a ball. But in the water, you can also "kick your legs". This means to move them back and forward quickly.
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