Might be better off asking about insulin related questions in an area with more insulin users... perhaps just the base diabetes area, or the type 1 area...
but anyway, I don't know about insulin causing puffiness, I do know that female hormones are famous for it! Can't say that insulin doesn't cause puffiness either... it might.
Could it just be that insulin has worked, and you can now put on weight because your body is working properly - digesting properly and absorbing the glucose that it was starved of before?
As for morning numbers - that's pretty typical. Once you're awake, or for some people, hours before they wake, the liver encourages a burst of glucose to give you energy to face the day. That's why I test and inject a big dose as soon as I wake up. I keep going up until I eat breakfast 
__________________ .,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,., .,.,.,.,.,.,.,.,.,.,.,.,,.,.,.,.,.,.,.,.,.,.,., Em Taking on diabetes one meal at a time. It wins the odd battle but I'm winning the war.
Addicted to my Lantus, Novorapid and medicinal chocolate *cough* .,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,.,., .,.,.,.,.,.,.,.,.,.,.,.,,.,.,.,.,.,.,.,.,.,.,., |