Should I just cut, or try to gain muscle and cut?

[JakeM2010]

OK so, I'm kind of having a crisis right now, and that is because, I want to prepare for summer, but I'm at a dilemma. I'm not fat, but I have too much body fat on me to really have any good definition anywhere. But at the same time, I have a problem because while I've packed on muscle, I really have to be honest and say that, I'm still pretty skinny. I weigh 160 and last time I maxed on bench I could only get 155. My arms are the worst part of me. I have abs, and I can see them when I pull my skin/fat down. And I have gotten compliments on my shoulders and back. So my dilemma is, to prep for the summer, should I just cut, and remove lots of body fat, or should I cut, and still try to gain muscle mass at the same time? (I know that for experienced lifters this really isn't possible, I'm definitely not experienced.