Qe2 is an excellent move.
1. It threatens Nxc5 (e pawn can't recapture due to the pin and Q can't recapture due to the bishop on g2) However, as soon as you move that knight, you are allowing black to win your c4 pawn. He is cramped, don't help him out of the jam. Your pawn chain will also start to fall if you do that.
2. It allows Nb5 > d6 this is an excellent post for you knigh (not you could also do this via a4 then Nb5, but this allowws his knight to hop to the b4 square (a huge improvement over it's current post).
General plans. Connect the rook, get the king to saftey, and target the backwards e and f pawns. However, you can't castle ddue to the half open h file.
I would do this via. Qe2, 0-0-0 (castle long) and then Rd-e1 and finally Nb5. Of course his actions may force some changes in your plans but its a good start...