What Causes Weight Loss And Itching Of The Skin?

Hello Doctor, good evening
I'm 47 years old, female, 5'3", 49 kilos, looks thinner, full- time teacher and is diabetic for 8 years. Last end of July, 2011, I experienced pain on the upper right abdomen and consulted to a diabetic doctor, done many blood test including hba1c, which is normal. She explains that my maintenance which is metformin and diamicron have affected my liver. And i was advised to stop all maintenance and just control my diet. Since then, I monitored my blood sugar everyday to adjust my diet and so far its getting nomal most of the time but it also rises ranges from 1- to 10 the most but seldom it could happen. Mostly 3-5 points higher. Since July, I took sprouted flaxseed, 1 tbsp eeveryday and whey protein 1tbsp everymorning..My problem is I'm getting thinner, for the last week, i felt my skin looks scaly, some itch sometimes, feels pressed on, pricking w needle especially on my arms and legs. I just put on olive oil. Please advise me what to do? what are its causes?