P.M.
I've been eating to correct for Type II diabetes for about 10 years now. I find it VERY hard to lose weight because the diabetes is a sign of sluggish metabolism, and because of the types of hormones that predominate, it's very common for fat to accumulate around the middle.
So I was able to keep my blood sugar down to within normal ranges for daily and A1c tests (with small doses of Metformin), but still had that tummy. No sugar, almost no carbs. But I've found I need MORE protein than most classical diabetic diets call for, and LESS carbs than they allow.
I've been using the Medifast diet products for the last 3.5 months, and am losing weight, though slowly. But this diet was designed by doctors for patients who wanted gastric bypass surgery, but had to lose lots of weight even before they were safe for surgery. If you're interested, send me a note and I'll turn you on to a terrific coach. This diet does cost, which is a struggle for me, but I'm sticking with it because it actually works and has been remarkably easy for me to stick to.
One of the things I've learned on this plan is that with so much calorie restriction, I drive my body into even deeper famine mode and slow my metabolism even more, especially when I add in lots of active exercise. So for now, while I'm in active weight loss, I cut back on hard exercise, and stick to walks and moderate gardening. When I work out more, I stop losing weight. When I exercise more lightly, I lose weight.
Another useful tip is to look up Low-Glycemic foods, which the body metabolizes more slowly, and thus they have a smaller impact on your blood sugar levels (and weight). Substitute these for higher-glycemic foods, and your control will improve.
Good for you for making such important changes! That extra muscle certainly does help you, and may keep you off insulin for longer. And I'll bet you look and feel better!