It's hard to give specific advice because everyone's different.
I wouldn't want to push any particular diet but I do know there are a lot of T2s who've done well by reducing their carb intake. Not only does this cut calories, but the theory is it should make blood sugar control easier, as it is primarily carbs that affect your blood sugar.
A subset of this is that when your blood sugar goes high, your body produces more insulin. Insulin converts this high sugar to fat, and also stops your body metabolising body fat. So the theory goes, the less you eat that involves insulin, the less fat you'll store and the more fat you'll burn.
However I would also very strongly recommend exercise. Exercise usually makes you use your insulin more efficiently, so your body needs less of it to process food. Less insulin again = less body fat.
As with all these things, you need to find what works for you. As a note, contrary to popular belief, reducing your carbs doesn't mean eating more bacon and eggs. In my experience it's about eating a lot more salad, veg and quality unprocessed meat. Think steak and salad rather than sausage and scrambled egg.
I think you need to take a close look at your diet as it would appear that you are eating things that your body cannot tolerate as far as your blood sugars are concerned. I would suggest starting a food diary, recording the amount of carbohydrates, fat and (if possible) calories of everything you eat and drink. This will give you a picture of where you stand, and you can then start looking for areas where you might reduce portion size or substitute items for more diabetes-friendly items. Do you have a home testing meter? If not then I would strongly recommend you ask your doctor for one and to prescribe you some testing strips so that you can monitor your tolerance for different meals. I would recommend The GL Diet for Dummies as a good guide to selecting food items that will have a slow and steady effect on your blood sugar levels.
