You can remove a friend or favorite in one of two ways:
If they are online you can click on the “Users” tab located above the scrolling chat and select either friends or favorites then find and click their name and select the remove option from the pop-up menu.
Click “My Account” on the orange bar, upper right of your screen.
In the menu on the left click “Friends and Favorites”.
You will then need to select the friend or favorite you wish to remove or you can opt to clear your entire lists by using the ‘select all’.
NOTE: Select all will only remove them one page at a time.