This is step by step to install xposed on MEmu Lollipop, contributed by Sean Post at Facebook.
First you need to install SUPER SU (chainfire) from Google play and reboot! in order for the installer to work.
#1 Download xposed at dl-xda.xposed.info/framework/sdk22/x86/ Then grab xposed-v85-sdk22-x86.zip
#2 Goto the downlded directory and unzip the xposed v85 to a directory on /sdcard/xposed (internal), or whatever you prefer.
#3 Goto the directory where you unzipped the xposed and you will see META-INF and system directory’s.
#4 From this directory go into META-INF/com/google/android and in there is 4 files select all those files and copy them to the the /sdcard/xposed directory or the directory where you unzipped the xposed
#5 Edit the Flash-Script.sh file and on line 162 (or the last exit 1 command in the file add # before it so it reads # Exit 1.
#6 Go into terminal emulator and type the following su (enter) then cd /sdcard/xposed (or directory where you chose to unzip) hit enter then type sh Flash-script.sh (then enter)
#7 Reboot MEmu
#8 Goto forum.xda-developers.com/showthread.php?t=3034811 and download
xposedinstaller_3.0_alpha4.apk and install it.
#9 Now run that app and it should say xposed installed!
Many thanks to Sean Post’s great sharing!