"Let me summarize the above a little more briefly: trainees should set a bottom and top-end for acceptable body fat levels. For males, 10-15% is a good range, for females 19-27% or so works. Diet down until you hit the low end, stabilize for two weeks, gain until you hit the high end, stabilize for two weeks, then diet back down while keeping the muscle. Over many months or a year of training, you should end up with more muscle than you started with which is the whole goal."
Good stuff! Thanks.