You are losing fat, getting leaner, and are asking us if the approach is working ?? I would say yes, it is.
No one here will be able to answer how long this plan will work, but its clearly working now. Stick with it until it doesnt work, then lower the calories on your non-cheat days 100-200 and the fat will come off again. OR, increase your cardio a bit (my preferred method over decreasing calories) and the same will happen.
If you are trying to get incredibly lean you will likely have to employ both strategies.