I'm not quite sure what is your exact meaning of "forward", but I try to answer for different situations.
If you want the browser to keep displaying www.friend1.com all the way without ever showing www.mywebsite.com, you should have friend1.com setup as a Google App account, and add their domain into your application (just like you did for your own domain). This way, all traffic to www.friend1.com (or what ever subdomain they pick) goes to your appengine app. And your App should detect the domain of the http request and response accordingly.
If you just want a "redirect"... that means, user goes to www.friend1.com will have their browser auto goes to www.mywebsite.com/friend1 and displaying it in the URL bar , well, just setup one index.html page in www.friend1.com and add meta refresh header in the file. Or use any server side redirect method.