Oh my goodness, yes, I've been there! I know it's stressful! I hope I can help answer your questions, and if you have any others, feel free to send me a private message.
Call your doctor to see if you can go back to breastfeeding. Breast-milk does help to clear out jaundice, but formula clears jaundice faster. Most likely, your doctor told you to stop breastfeeding so that your baby wouldn't fill up on breast-milk. However, I personally don't like this advice. I think you should have been able to feed breast milk at least every other feeding, and I think you might consider getting a second opinion.
Problem #1: This is most likely in part because of the jaundice. Most babies fall asleep during nursing at some point, but jaundiced babies sleep much, much more than nonjaundiced babies. In this case, you may have to be cruel to be kind. Strip your baby down to her diaper, grab a cold, wet washcloth, and when she falls asleep, set her down (so that she's not in your arms) and then wipe her all over with the washcloth. Let her wake up and get a bit mad and then try to feed her again. If she will eat while sleeping, even better.
Problem #2: Go to Amazon.com and purchase a Milkies Milk Saver. This is a product that collects milk from the breast that is not in use, which you can then freeze or feed to your child later. Breast milk can be kept for 4-6 months when frozen, so even if you don't need extra milk now, you may eventually! It's a really great product that I had never heard of the first time I was nursing, so I just used a towel to soak up the extra milk. But collecting it for later use makes me feel so much better!
Problem #3: These are clogged milk ducts. This is another time when a pump would be very handy! After the baby has finished eating, pump out the remaining milk. In the meantime, to treat the milk ducts, take a hot shower and massage the lumps when in the shower. Also, put a warm compress on your breasts before nursing and turn the baby's chin into the lumps. If this does not work, if the lumps turn the skin red, or if you get a fever, call the doctor for an antibiotic.
Problem #4: When you pump, do you get the same amount in milk that you are feeding in formula? If yes, you're doing fine (being engorged in the beginning is normal). If you're getting more than she needs to eat, I wouldn't pump every 2 hours but rather I would pump every time you feel uncomfortably full or engorged. Don't bother pumping at night if you don't need to - only do it during the day. This is what my pediatrician told me and it worked well with both babies. If your daughter is not cleaning you out, go ahead and pump out the rest, though, especially while you have clogged ducts, as this will help clear them.
Normally, you do not want to wake a newborn during the night to feed, but instead "feed on demand," or whenever the baby wakes. During the day, it is important that you feed at least every 3 hours (every 2 is more common) and so yes, you should wake a newborn to feed for the first couple of weeks during the day, but not at night. HOWEVER, a jaundiced baby NEEDS to eat to help clear out the jaundice, which is probably why your doctor instructed you to feed every two hours throughout the 24-hours. I would absolutely wake your baby every 2 hours until she loses her "suntan" and her scores are down to about 12 or below. Insist that they recheck her in about 4 days to see if she is still severely jaundiced before you begin letting her sleep a little longer at night.
I agree that seeking out a local Le Leche League would probably be beneficial for you. It sounds like you need some support! Good luck!
ADDED: I just wanted to add that you might find using a syringe or dropper to feed the formula a better idea than a bottle. A baby will not fall in love with the syringe the way she might with a rubber nipple, and so in the long-run, it is probably a better idea for you. And please don't feel bad. Breastfeeding is really hard!!! I'm on my second child, and I still struggle occasionally - just check my posts! ^_^