how does one "cut"?

I'm pretty happy with the muscles that I have. How do I reduce the body fat? Do I keep lifting the same amount? or increase the weights?

Currently, I lift heavy weights and do lots of cardio. Here is my routine:
Monday: Run, lift, kickbox
Tues: Run, lift
Wed: Kickbox, Nike Training class
Thursday: Run Lift
Friday: lift, stairs/ or rest
Sat: Nike Training class, kickbox
Sunday: run, lift/ or rest

I'm having difficulty reducing the % body fat. Is it just pure calorie deficit?

thanks.

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