yes, a simple aa grab will counter all regular teleporting shenanigans. this is NOT true for EN teleports, however. there are few joys greater than killing lao with sheeva. tough, but not impossible. punish blocked dive kicks with b2,1~fb or aa grab; since you already use that string you should be able to do so. also use her EN bf3 to stuff his wakeup spin crap; even his EN wakeup spin is useless against it! once this happens, they will be hesitant to wakeup with a spin, and that leaves you an opportunity to get in close and use f3 pressure (following it with a mix of ground pound, low grab, fb, or bf3) or start your 212f1~bf3 frametrap. even your stomp can be used if you are wise. try tele-stomping and landing in front of lao. his immediate reaction is usually to spin in anticipation of you landing on him. but landing in front gives you room to avoid the spin and punish with f4. if they catch on to the trick and enhance their spin (which will cause him to move forward) steer sheeva so she lands behind him. he will burn a bar of meter, and you should have time to pressure him with a fireball, try more telestomp mind games, or perhaps wait to counter the dive kick or teleport which is sure to follow. long story short, if you can get lao to waste meter and hesitate to use his spin, dive kick, or teleport, then you have a great chance to win. all he has left are his hat throws, and your telestomp can punish those!!