How are you drawing your circles?
However you are trying to draw it you'll probably end up having x and y points representing the 2 circles.
xCenter1 = 7;
yCenter1 = 7;
xCenter2 = 12;
yCenter2 = 10;
theta = 0 : 0.01 : 2*pi;
radius1 = 5;
radius2 = 6;
x1 = radius1 * cos(theta) + xCenter;
y1 = radius1 * sin(theta) + yCenter;
x2 = radius2 * cos(theta) + xCenter2;
y2 = radius2 * sin(theta) + yCenter2;
dC1 = sqrt((x2-xCenter1).^2+(y2-yCenter1).^2)>=radius1;
dC2 = sqrt((x1-xCenter2).^2+(y1-yCenter2).^2)>=radius2;
plot(x1(dC2), y1(dC2),'b.',x2(dC1),y2(dC1),'r.');
axis square;
xlim([0 20]);
ylim([0 20]);
grid on;
Looking at your sample picture it is easy to see that the infringing portion of circle 2 into circle 1 are points that are within the radius of circle 1. (vice versa for circle 2) With this we can calculate the distance of all points of circle 2 to the center of circle 1 and compare it to the radius.
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