What should I do? Muscle gain or deficit?

missveeoh

Im 5'4" and 20 years old, weigh 140 pounds, usually go to the gym 3-5 times a week and mostly do weights and 30 min cardio (usually stair master) now my problem is that I have around 20 pounds to lose but I'm stuck at a plateau and I just don't know what to do anymore. I absolutely love lifting weights so I thought maybe I want to build muscle instead of just maintains LBM. I keep reading that lifting makes one lose inches off their body and that's basically what I want- all along I've kept thinking I want the # on the scale to decrease...no, I want to feel strong and look toned.

I understand my ideals seem very unrealistic but I just read http://www.nerdfitness.com/blog/2011/07/21/meet-staci-your-new-powerlifting-super-hero/ and thought if she could do it, then I can too (not necessarily look like her since I have a different body shape than her but I'm tired of wanting to look slim but ending up skinny fat)

I just need advice. I know I have eat over my tdee but what exactly do I do? Bulk and cut? I'm reading too many posts but not enough clear information. How long do I keep eating over maintenance?

All I'm thinking of doing is dead lifts, squats, bench press, overhead press and eating on a calorie surplus but would this really get me to my goal: gaining muscle and losing the last 20 pounds of fat?

I seem to be completely lost. Oh and btw, I'm eating roughly 1380 calories per day so I think this surplus will be quite difficult.
Thank you everyone for taking the time to read and respond.