Don't ever stop squatting! In one way, adding muscle does help reduce fat-- for every extra pound of muscle you add, your body must use ~30 calories a day to support it. So if you add 5 pounds of muscle, that is an extra 150 calories of BMR you get to have every day.

I couldn't even if I wanted to; I am getting married to the guy I train with...Nope, I'll be doing squats for the rest of my LIFE!
Squats are definitely mandatory for any good fitness program- everyone should do them.

u see, my diet goes like dis:
breakfast- 5 eggwhites 2 slices of whole wheat bread, skim milk with 1 cup of whey protein powder (i dont blend it but just stirred it with the milk)
lunch- 1 c of rice, salmon, 3 servings of green vegetables, 1 piece of chicken drumstick (not fried)
snack- 1 plate caesar salad, skim milk with WHEY PROTEIN POWDER
dinner- same as lunch
snackk-weight loss shake

any mistakes, i heard gotta eat 5-6 meals a day, dont know if what i am eating is good enuf

As long as this doesn't put you over the amount of calories you can use in a day, then you should lose the unwanted weight. If you find you are not retaining as muscle as you would like, then you will need to drop some of the carbs, up the protein intake and make sure you are providing a stimulous such as strength/weight training.