When holding the Lechem Mishneh together while making the bracha - Do both challot have to be touching ? What if one challah was wrapped in cellophane or in a bag (yet held next to the other challah during the bracha) - would that be ok ?
Rabbi Chayim Pinchas Scheinberg is paraphrased (in The Radiance of Shabbos by Rabbi Simcha Bunim Cohen) as saying that, even if one will not cut into the second loaf, he should hold it unwrapped. However, Rabbi Cohen gives no reason for this rule. Sh'miras Shabas K'hilchasah, chapter 55, footnote 38, also says it should be unwrapped, citing Mishna B'rura [who is (eventually) quoting the Y'rushalmi].
Shevet HaKehosi (2:114) says that it should be taken out of the bag and L'Chatchila the two Challos should touch.