It is now generally agreed that multidimensional, multigroup, neutrino-radiation hydrodynamics (RHD) is an indispensable element of any realistic model of stellar-core collapse, core-collapse supernovae, and proto-neutron star instabilities. We have developed a new, two-dimensional, multigroup algorithm that can model neutrino-RHD flows in core-collapse supernovae. Our algorithm uses an approach similar to the ZEUS family of algorithms, originally developed by Stone and Norman. However, this completely new implementation extends that previous work in three significant ways: first, we incorporate multispecies, multigroup RHD in a flux-limited-diffusion approximation. Our approach is capable of modeling pair-coupled neutrino-RHD, and includes effects of Pauli blocking in the collision integrals. Blocking gives rise to nonlinearities in the discretized radiation-transport equations, which we evolve implicitly in time. We employ parallelized Newton-Krylov methods to obtain a solution of these nonlinear, implicit equations. Our second major extension to the ZEUS algorithm is the inclusion of an electron conservation equation that describes the evolution of electron-number density in the hydrodynamic flow. This permits calculating deleptonization of a stellar core. Our third extension modifies the hydrodynamics algorithm to accommodate realistic, complex equations of state, including those having nonconvex behavior. In this paper, we present a description of our complete algorithm, giving sufficient details to allow others to implement, reproduce, and extend our work. Finite-differencing details are presented in appendices. We also discuss implementation of this algorithm on state-of-the-art, parallel-computing architectures. Finally, we present results of verification tests that demonstrate the numerical accuracy of this algorithm on diverse hydrodynamic, gravitational, radiation-transport, and RHD sample problems. We believe our methods to be of general use in a variety of model settings where radiation transport or RHD is important. Extension of this work to three spatial dimensions is straightforward.