I like working out in the morning also. It’s a great way to start the day, and assures that you get it done.
Depending on what your resting HR is, you may be working too hard. I like this HR calculator because it takes into account your resting HR, as well as your fitness level. The aerobic fat burning range is in the 60-70% range. My resting HR is 64 BPM, with a Max HR of 186 BPM. My cardio workout range for fat burning is ~130 BPM.
FWIW, there are two recent studies that have caused me to change the way that I do my cardio. I start with thirty minutes “in the zone” on the bike or treadmill. I then do a twenty minute ab workout, followed by another 30 minutes on the bike or treadmill.
As for food intake, you have to adjust this as you go. As you lose weight, your caloric requirements lessen. On the flip side of that, as you build lean muscle, your metabolism will require more calories. Here is a good BMR calculator, and with that BMR number you can go here to calculate your caloric needs. That will provide you with the amount of calories to maintain your current weight given your activity level. To lose 1 lbs. per week, you would reduce that by 500 calories.
As for the fear of eating too much, that is common. Scott has talked about it many times though; you don’t want to let your cals dip, because it will send your body into starvation mode, and plateau because of a lack of adequate fuel. And worse yet, the muscle will atrophy (you’ll lose lean muscle).
If your goal is to add muscle, you really need to keep your calories up, as the muscle needs that fuel to rebuild after a hard workout.
What made you decide to use the 4 sets of 12 reps? I have found that I really like to do 3 sets of 8 reps, with as heavy of weights as I can complete the sets with using good form. I’ve lightend my weights up a bit, and am using slow, deliberate movements. Try this with 60 seconds of rest between sets, and your muscles will be begging for mercy.