I was diagnosed with Type II diabetes four years ago and my internationally recognized clinic put me on a high protein diet (15 carbohydrates per meal) with no limit of fat - which is the way they treat all Type II diabetics. I eat the natural fats like you do, butter and some olive oil. I lost weight, have controlled my Type II with diet alone, and feel much better than I did before.
Along those lines there's a great book which is very well researched with great information by Dana Carpender "How I Gave Up My Low-Fat Diet and Lost 40 Pounds ...and How You Can Too." The author provides overwhelming research on how the high protein diets provide a healthier life style than the SAD diet. She doesn't push a particular high protein diet but reviews several of them. This is a great read for anyone who is discontented with their current low-fat diet, the kind that gave me Type II.
It is the Virginia Mason Clinic in Seattle, Washington. They have been researching diabetes since 1923 and continue to do so.
http://www.benaroyaresearch.org/
"...Excess protein is converted to glucose...."
No it isn't. There is no limit to the amount of protein that the Virginia Mason diabetic diet allows - only a limit of carbohydrates to 45 per day total. I've been on it for four years and have never had a problem with protein creating glucose. All I have to do to increase my blood sugar levels is to eat oatmeal or potatoes or a whole grain bread sandwich, each of which raises my BS levels higher than ice cream.
There is nothing in the instructions for diabetes from this clinic that even begins to limit protein http://www.benaroyaresearch.org/ - I've taken classes from them and have all their handouts regarding Type II diabetes. Nothing but nothing limiting protein - or fat. I've lost more than 20# going from a BMI of 26.3 down to a BMI of 22.9 and control my Type II with diet alone. My lipid profile has improved too with a lower cholesterol and a higher LDL plus a humongous decrease in triglycerides which went from 380 down to 60.
The American Diabetes Association diet will kill diabetics.
It depends on what you eat with your protein (15 carbs are my max) and when you measure. Anything you eat will raise the BS levels initially, but for me after 2 hours protein just doesn't raise my BS at all. Again, my clinic limits carbohydrates to 15 per meal (45 total per day) with no limit on protein or fat. I've found that sausage of any kind will cause my BS to rise because it all has added junk, mostly carbohydrate fillers. I have to be careful and always check labels. Fish sticks and deli chicken are both capable of raising my BS because of the coatings which are primarily flour. With this dietary restriction it is difficult for me to eat out but one of my favorite places is an all you can eat Sunday buffet with loads of sea food and all the prime rib you can eat. Initially I really checked my BS after eating there as well as other all you can eat buffets and have never had a problem - as long as I stick to the protein. Yes, there are times I fall off of that routine, sometimes I crash - particularly during the holidays at family gatherings. But I can get back on track in a couple of days with the protein.
Dr. Bernstein, a Type I diabetic and the originator of home blood sugar testing, is even more restrictive and limits carbohydrates to 4 per meal for a total of 12 per day - but it works. I've been able to go for several days at a time on his diet and have always had good results.
I should add that I know that each case of Type II diabetes is unique and each person will react to different foods differently. I knew a Type II who could eat oatmeal without raising their blood sugar but for me I cannot eat any grains, whole or otherwise without it raising my blood sugar to very high levels. I love toasted cheese sandwiches but simply can't eat them. One has to test after different foods to find their triggers. I have found that I can eat watermelon by the pound and it actually lowers my blood sugar and in fact I use it for when I cheat on my diet.
The Type II class I took at Virginia Mason had about 15 "students" (newly diagnosed Type II patients) from their mid-twenties to their seventies (me for one) and I know for a fact that all were put on the high protein, restricted carbohydrate diet. Most (including myself ) were overweight. At the end of six weeks all students except one had improved their blood sugar levels significantly and the one who didn't had just been on a cruise and couldn't stick with the program. One woman lost 20# in that six weeks and another who's monitor I had seen during the first class with a blood sugar level of 385 had lost 10# and was controlling her blood sugar levels within the normal range with the diet alone. Everybody claimed to have more energy and felt better than they had in a long time. I've heard from many who say that one Type II solution doesn't fit all, but VM applies that one solution to all their Type II patients and the rest is up to them to stick with it.