INCAPACITATESTAY AWAY FROM MY STUDENTS:1) if my friend character uses Incapacitate to deal 1 penetrating damage to opposing character, can that opponent can trigger COLOSSAL RETALIATION against my character who used Incapacitate?

2)if my friend character uses Incapacitate to deal 1 penetrating damage to opposing character, can that opponent can trigger STAY AWAY FROM MY STUDENTS against my character who used Incapacitate?

Yes to 1, no to 2.

Colossal retaliation only cares about damage. Students needs ghat damage to come from an attack.