I would cut down to 242 lb. Run the program out as long as you can while doing so. When you can no longer make progress on the program, move to an intermediate program for the remainder of the fat loss phase. Then when your fat loss is concluded, run another novice linear progression. As for diet, start by cutting 20-40 grams of fat from your current diet to start out. If that doesn't work then begin cutting carbohydrates. No cheat days.