Fadi took me school on this subject just the other day - and so far, only 4 or 5 days in, I'm noticing a difference!
Links are here:
http://ausbb.com/bodybuilding-training-discussions/9622-training-smart-not-hard.html
http://ausbb.com/bodybuilding-training-discussions/9219-lose-fat-maintain-muscle.html
http://ausbb.com/nutrition-diet/8997-diet-1-2200-calorie-food-plan.html
On the matter of "how to cut" and "when to cut", do whatever feels right for you. What has worked for me so far, has been 2 months of bulking (I managed to gain 8kg), and now 1 month of cutting. I eventually want to be a LEAN 85kg (I'm a mushy 78kg now). I am cutting only because I'm going on a 3 week holiday over x-mas, and I'm quite sure that I'll gain a LOT of fat while I'm on vacation.
My plan will be to bulk until I hit a "milestone weight", cut for 6 weeks, and rinse lather and repeat as many times as necessary.
Hopefully, with hard work and proper diet, I'll be a lean 85kg in 2 years time (hopefully less...but one has to be realistic!).
Cycle 1 - 70kg to 78kg ---> Cut for 6 weeks and maintain weight / lose 2kg (this is what is actually happening in my life now)
Cycle 2 - 76kg to 82kg ---> Cut for 6 weeks and maintain weight / lose 2kg at most
Cycle 3 - 80kg to 85kg ---> Cut for 6 weeks and maintain weight / lose 2kg at most
Cycle 4 - 83kg to 87kg ---> Cut for as long as it takes to get to 85kg @ 7% Body Fat
Cycle 5 - Maintain weight, and shift from "Body Building" to "Strength Building" and post on the other half of the forum where Markos lives
I probably shouldn't use the term "cycle" on Ausbb