Your calculations are correct, but that alone does not make a correct solution. It should be clear what the connection between the different lines is. The first line is what you want to prove, so say that.
We have to show: $ \forall \epsilon >0, \exists \delta >0$ s.t. if $0< | x-1 | < \delta$ , then $| \frac{x^2}{x+2} - \frac{1}{3} | < \epsilon $.
I personally would have used more English words (“We have to show that for each $\epsilon>0$ there is a $\delta$ such that...”), but that is a matter of taste.
If I was grading this as homework, then regarding your next line I would ask: Where does the $\epsilon$ come from? So far you have not introduced an epsilon. Of course, I understand that you want that inequality to hold, but then you have to say that. I would prefer to just state what you are actually doing, namely a quick calculation:
We have $| \frac{x^2}{x+2} - \frac{1}{3} | = | \frac{3x^2 - x - 2}{3(x+2)} | = | \frac{(3x+2)(x-1)}{3x+6}|$.
You begin the next line with “let $\delta=\frac13$”. This is not good, because actually you want to make a statement that holds whenever $\delta\le\frac13$. But so far there is no need to introduce $\delta$, just state what you are claiming.
We note that for $|x-1|<\frac{1}{3}$ we have $0<|x|<\frac{4}{3}$ and hence $|3x+2|<6$ and $| \frac{(3x+2)(x-1)}{3x+6}|<| \frac{6(x-1)}{6}|=\lvert x-1\rvert$.
I have added $0<\lvert x\rvert$, because you are using this for $\lvert 3x+6\rvert>6$.
Now we can wrap things up. What I do not like about your formulation is the “so $\delta =\mathrm{min}\{1/3, \epsilon \}$”. Since $\delta$ has not yet been defined, you cannot claim that it equals something else. What you mean is that setting $\delta$ to this value will work. So let's just do this.
Now let $\epsilon>0$ be given. We set $\delta =\mathrm{min}\{1/3, \epsilon \}$. Then for all $x$ with $\lvert x-1\rvert<\delta$ we have
\begin{align*}
\left\lvert\frac{x^2}{x+2} - \frac{1}{3}\right\rvert
&<\lvert x-1\rvert&&\text{because $|x-1|<\frac{1}{3}$}
\\&<\delta\le\epsilon.
\end{align*}
This is what we had to show.
Now I am sure that you can still improve some of these formulations. The important thing is that you really ask yourself what your claims are and that you express these clearly.