What's the best way to beat Shao Kahn in Mortal Kombat?

I'm playing the new Mortal Kombat and I am having trouble beating Shao Kahn in the story mode with Liu Kang. Does anyone have tips and strategies on how to beat him? He's very cheap.

Solution 1:

Do the bike kick and the flying kick every time he taunts. Throw in some upper cuts when he blocks the flying kick.

Solution 2:

I think I found an even easier way:

Jump backwards, so there is a full screen distance between you and Kahn, then do the high fireball (back, forward, X) over and over again. After a few fireballs you will feel the rythym.

In this state, Kahn will only do three things:

a) block, you will only damage him slightly
b) throw a lance, if your rhythm is good, he will be interrupted, otherwise you will be damaged, but he won't do anything else if you continue fast enough
c) taunt, free damage

Cheap, but works.