I guess my question is...well there is debate about whether or not you can lose weight and gain muscle at the same time because one requires a deficit and one a surplus so i'm wondering if you are running the deficit...i mean things arent growing on your body at that point so i just thought possibly your penis wouldn't either.....
That can be done- especially in the beginning of your training career. Now, once you get to the more advanced levels of training, focusing on one aspect over the other will yield accelerated results of that aspect. More on this:
You
can accelerate the process of adding muscle by "bulking up" (consuming a significantly larger amount of calories than necessary for maintenance), but you shouldn't allow that to get so out of control that you'll have to spend a very long time shedding excess bodyfat once you decide to get "cut".
Unless you're at the competitive level and training for a bodybuilding contest, you don't have necessarily to sacrifice one for the other. One can continue to gain muscle while losing bodyfat, though there's a point to where that starts becoming difficult once you get into the very low bodyfat percentages. This is assuming that you're not using any anabolics to assist your training.
You'll also benefit from cycling your training. You can create training phases where you're working for strength, then size, then fat loss, and then a down period where you can allow your body to rest and/or focus on different forms of exercise that allow you to rest from heavy weight training while allowing you to maintain conditioning. This also helps you to break up any training monotony and will help to prevent mental burn out.