Concept:
The axis of a parabola is the line passing through its vertex and focus.
A circle touching two perpendicular lines has centre equidistant from both lines.
Step 1: Find the parabola axis.
Given
\[
y^2-4ax-2ay+a^2=0.
\]
Complete square:
\[
(y-a)^2=4ax.
\]
This is a parabola with vertex
\[
(0,a).
\]
Focus
\[
(a,a).
\]
Given focus is
\[
(1,1).
\]
Thus
\[
a=1.
\]
Hence parabola becomes
\[
(y-1)^2=4x.
\]
Its axis is
\[
y=1.
\]
Step 2: Use touching conditions.
Circle touches X-axis.
Distance of centre from X-axis
\[
=
|\beta|
=
r.
\]
Circle also touches axis
\[
y=1.
\]
Distance from centre to axis
\[
=
|\beta-1|
=
r.
\]
Thus
\[
|\beta|
=
|\beta-1|.
\]
Step 3: Solve for \(\beta\).
\[
\beta^2=(\beta-1)^2
\]
\[
\beta^2=\beta^2-2\beta+1
\]
\[
2\beta=1
\]
\[
\beta=\frac12.
\]
Therefore all centres lie on a fixed horizontal line.
Hence locus is
\[
\boxed{y=\frac12}.
\]