If you cut, you'll still be skinny fat. You'll just be a smaller version of how you look now. You need to eat slightly above maintenance and lift heavy.
You'd be supplying your body with less calories surrounding your workouts in scenario 2 which would have to impede your ability to give max effort in the gym. I can't imagine scenario 2 being...
After bulking for a few months, I decided to go on a mini cut to lean up a bit. The mini cut lasted 2 weeks, and I was noticeably leaner than before. However, I started bulking again after the cut...
It looks like you added some mass to your upper body, so you should be fairly happy with your progress after the cut. Next time you start bulking, be sure to work those legs hard.
I've been bulking for the past 12 weeks, but have started to lose more definition than I would like. I plan on bulking for 4 more weeks and then cutting for 5 weeks before I start my bulk back up...
If you're hunger has increased and your gym performance has dropped, a refeed may not be a bad idea. You can go into a surplus. Increase carbs, lower fats, and keep protein about the same.
It might take a little longer to bulk then cut, but the results will be much better than if you tried to cut more right now. More muscle would do you wonders.
