Could someone--one of you experienced, kind, articulate people--please answer a question I've had for a long time and have never been quite able to get my head around?

I am so confused about how to go about "cutting" as opposed to "bulking."

I would like to do both, but my main goal is to get rid of 6 pounds, minimum, of body fat.

I'm doing cardio AND lifting heavy, three times a week, as per BLF. Eating at my total daily energy expenditure minus about 20%. Diet includes 1 gram of protein per pound of body weight.

So what am I doing, cutting or bulking? LOL? I can't do both at once, right? Which should I pursue first, and exactly what do I eat to go about it?

Thank you. Please speak to me in words of one syllable, since I am so addled at this point.