How do you build muscle while trying to remove fat from your body?

gary m asked: I am 6 foot 1 13 stone 8 pounds. 40inch chest 34 inch waist 12inch arms. I want to try and build my body to read at least 2 inches bigger on chest arms shoulders etc, but get my waist size down to 30-32 inches.

If anyone has any ideas of how to [...]