Starving yourself will become counter productive in the end and slow your metabolism more as your body thinks it's starving.
Back when I was in school and the Pyramids were being built we were taught that a calorie is a calorie is a calorie and it didn't matter where it came from. Modren science has shown that that mantra is no longer true due to the nature of how food is broken down in the body. First off, eliminate all refined sugars--they do you no favors. Read nutrition labels and ingredients. Again, read nutrition labels and ingredients. Food manufacturers can make all sorts of claims on the front to trick you into thinking something is healthy. Read the ingredients. If you see anything that ends in "ose," it's a sugar (high fructose corn syrup, sucrose, lactose, dextrose, etc). Avoid most bread and cereal products. Not saying you can't have bread, saying that the stuff in the grocery store is more often than not a chemically refined "bread food." Cut out soft drinks, diet soft drinks, and juices (There is the same number of grams in a 12 oz can of oj as there is in a 12 oz can of regular coke. Best rule of thumb, if it wasn't around 150 years ago, best not to eat it. Another really good rule is if the ingredient list on the box lists more than 5, don't eat it--actually if it comes in a box, don't eat it ;)
Now you can eat fruit because the fructose in real whole fruit is counter acted by the fiber and other nutrients in the fruit. You can eat veggies, meat, chicken, fish, cheese (not velveeta), dairy if you choose. Shop the perimeter of the store; that's where the whole, nutritious food is.
As for your workout, you can't spot reduce. Your body will burn fat all over, however it's genetically designed to do. Focus on compound movements (more than one muscle group) for your workouts and work the major muscle groups (Legs, Back, Chest) before hitting the smaller ones (arms).
Squats and lunges are your friends. You can make squats compound by doing a shoulder press or curl with them. Lunges you can do a wood chopper movement.
Muscle is metabolically active so as you build muscle, you will be burning fat even when you are not working out. You can up the cardio if you want, but I would limit it to more of a warm up/cool down or maybe 1-2 days a week. Cardio causes capilarization (sp?) of the muscle tissue (a good thing to make it grow), but can also compete for nutrients your muscles need to recover.