What do I do?

This is my first post! I would really like some advice on what I should do right now. I've been weight training for about a year, and I'd really like to build my lower body, but I have this layer of fat (maybe about 5 lbs worth) around my core that I've always had that I really want to lose. Based on a bunch of online calculators, my TDEE is about 2000-2400 calories. I initially wanted to focus on getting rid of my fat before building my lower body, so for a few weeks I was at 1800, then for the past couple weeks I've been at 1600 with something like 180C/120P/40F with one refeed day a week. I'm a college student, so I haven had a lot of time to experiment with my diet, so I'm kind of using a very general form. Anyway, I feel like I'm already losing some muscle without losing any fat. What I'd like to know is should I not try to lose fat first? I've been scared to eat in a surplus because I just feel like that layer of fat will just get thicker. I eat pretty clean (I aim for about 80/20), but I just don't know what I should do from here. Also, I'm female, 5'5, and 120 lbs. Any help is super appreciated!