By increasing lean muscle mass, you would end up burning way more fat in the long run. I would suggest strength training, clean and well balanced diet, and 4-5x a week HIIT cardio at 30-45min.
You said you've done this before? Obviously you did some unrealistic dieting phases that you couldn't adapt to in the long run. Try and ease into the dieting and exercise so that you can follow it the rest of your life and not walk around weighing 230lbs. Make it fun for yourself, lifting to me is a huge stress reliever and next to school, the biggest priority in my life.
As for your diet, eat between 5-7 meals a day. Getting at least 1g of protein per body weight, 100-125g carbs, and roughly 50g fats. Make sure you're getting plenty of omega-3's (I buy the eggs with omega-3's, and supplement with fish oil). Also, don't neglect the omega-6's such as Extra virgin olive oil, or any natural oil, and also natural peanut butter (the oily kind).
I would consume carbs for breakfast (1 cup PLAIN oats = ~50g carbs). Also, pre- workout and that's it. Other 4-5 meals get the required fats, and slam down some FIBER (Green beans, Lettuce (not ice burg), Broccoli, etc.) Make sure you eat a ton of greens man, your body actually ends up burning more calories getting rid of the fiber than it does consuming them. Shoot for 2-3 cups a day of veggies.