You'll want to rewrite $\csc\theta=\frac{1}{\sin\theta}$, to make things easier. Then
$\begin{align}\cfrac{\cos\theta}{\csc\theta-2\sin\theta} &= \cfrac{\cos\theta\sin\theta}{1-2\sin^2\theta}\\ &= \cfrac{\cos\theta\sin\theta}{\cos^2\theta-\sin^2\theta}\end{align}$
Dividing the numerator and denominator of that last expression by $\cos^2\theta$, you'll get exactly the right hand side of the identity.
To make it even simpler, you'll generally want to rewrite things in terms of sines and cosines--this won't always be the easiest approach, but at least if you're limited to reciprocal, quotient, and Pythagorean identities, you should get started that way. In this case, the left hand side becomes
$\cfrac{\cos\theta}{\frac{1}{\sin\theta}-2\sin\theta}=\cfrac{\cos\theta\sin\theta}{1-2\sin^2\theta}$
and the right hand side becomes
$\cfrac{\frac{\sin\theta}{\cos\theta}}{1-\frac{\sin^2\theta}{\cos^2\theta}}=\cfrac{\cos\theta\sin\theta}{\cos^2\theta-\sin^2\theta}.$
The only thing different now is the denominator. Thus, all that remains to do is figure out how to show that $1-2\sin^2\theta=\cos^2\theta-\sin^2\theta$, using only the permitted types of identity. In this case, gathering like terms may be useful (bring all your trigonometric terms to the same side of the equation to see why it is true). Once you see that, you should be able to proceed from one side to the other, step-by-step.