Step 2: Eat protein. Research has shown that when in a calorie deficit, having your protein intake high results in greater fat loss, satiety, and preventing muscle degradation (i.e. losing all your hard earned work)
Step 3: Lift HEAVY weights, specifically compound lifts (Bench, Deadlift, Squat, Pull-ups). This will build strength and muscle each time you add weight to the bar. You will find your strength only progressing more and more. This is what is known as progressive overload!