As for the needle see
KAYanEE toy machine, need info. and
needle designation needed toy Kay an ee It looks like yours would take the 12x1, which are no longer available. I think I'd try a 15x1 first, as suggested above (with flat on right). There are supposed to be substitute needles for 12x1, but I have read various reports about them being different depending on manufacturer and since they are round shank can be rather fiddly to install.
As for threading
https://media.hibid.com/img.axd?id=4...OXVjbDccBAPsPj You can't see it, but there is a guide on the nose that it needs to go through before threading the needle from left to right. I looked at it, again, and I'm pretty sure that the thread needs to go under the disc with the spring on it.
Janey - Neat people never make the exciting discoveries I do.
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