What is blacks best way to play against this?

you could just use a diagram

I like 2...e5.

2 Qe2 is tricky.  It will catch some by surprise and throw them off.  Not many, though.

2 ...d5 and ...e5 are both perfectly viable, but current master practice overwhelmingly favors 2 ...c5  3 g3 Nc6, with the most common follow-up (from various move orders)  4 Nf3 d5 5 d3 Nf6  6 Bg2 Be7  7 e5 Nd7  8 0-0 0-0  etc., Black is fine, no problems.

2.Qe2 is designed against 2..d5 when white gets some advantage after 3pxp Qxp etc . Playing a sicilian structure with 2...c5 is fine. As is 2...Nc6 3Nf3 e5 playing a e5 position with strange Qe2.

Well, with 2.Qe2 White typically gets a worse version of the KIA, as Black I'll go for a system c5/g6/Nge7/Nbc6/b6/Bb7/Bg7, which seemed to work well enough for me in those few games where White played 2.Qe2.

Of course 2...e5 looks reasonable, too. White's queen seems to hinder a natural development for White, which is a bad thing to have for them, if Black transposes to the open games.

Maybe White's best try to limit the damages they have done to their position is 3.Qd1, and from here it's obvious that Black is already playing as White in an open game, and Black can choose whatever is usually good for White after 1.e4 e5.

Fantastic stuff people, share your systems, this is all good food for thought...or food for blitz!?