I have a muscular build and it's quite clear to see where the extra fat is going(it practically hangs off the muscle..and only in certain areas).How can I make sure I'm burning mostly stored fat during my excersise?

Some people think that working out in the "fat burning zone" of your maximum heart rate will ensure that you are burning mostly fat. Technically this is true - but if you work out in your cardio zone - I aim for 80% of maximum - you burn more calories over all. At the end of the day it's burning more calories than you consume that creates a calorie deficit. And that's what makes the flab go away.

Yeah, you don't need to burn fat. You need to burn calories. It doesn't matter where the calories come from, you just need to run a deficit so that your body will dip into its fat reserves. The "fat burning zone" is a myth.

Do as much exercise as you can at the highest level of intensity that you can manage without hurting yourself or burning out. This is how you will lose fat.