I did my first "cut phase" last year from September - December and got some great results.
Perhaps there's a better way, but I started out with 25 minutes on the eliptical machine after lifting followed by 10-15 minutes of sprint/jogs. Every 3 weeks I would increase my time on the elliptical by 5-10 minutes.
As far as dieting, try not to lose more than 1-2 lbs. per week or you'll likely be cutting into your lean mass. So try not to have more than 1000 calorie/day deficit with your diet.
I kept the weights heavy while I was cutting but I did lose some strength. Nothing too dramatic though. That being said, I feel that bulking and cutting simultaneously is damn near impossible unless you are a highly advanced lifter who has been doing both for a LONG time and understands his/her physiology and their diet really, really well. It's not impossible, but it is definately impossible's cousin.