High-fat Paleo here
I've been on the paleo WOE (not Cordain's version, as I like to include lots of healthy fats from grass-fed meats and coconut oil) since mid last-year. I got rid of some body fat, although I wasn't training enough and lost some muscle as well. Started at 160lbs and got down to a minimum of 133lbs over 3-4 months. I was skinny-fat then, so I added some strength training and occasional sprinting to my routine. Starting body fat is unknown (probably in the low 20s) and current body fat is around 13-14%.
I've been lifting weights since late Jan to build up some muscle mass and help with fat loss (would like to get down to ~ 10%). I'm doing Starting Strength right now and it is working fine. I still have a long way to go until I max my lifts, but I'm happy with my body changes so far.
I'm a big fan or organ meats. My daily cheat is coffee (black) and my occasional cheats include cheese and a few drinks less than once a week.