SOK (Save our Knitting

So, my knitted kitty is coming along well...or rather was coming along well: 



But now that I am nearly finished the body and head (kinda looks like a purse thus far, huh?) I have hit an instruction I just don't get.

To set it up, I have a skein of brown still attached, though I've been knitting with the white for the last 12 or so rows.  Now, my next bit of instructions goes like this:

 

"Using separate balls of yarn for each color change and twisting yarn where colors meet to prevent hole forming, with white, (inc 1) 3 times, k8, with brown, k34, with white, k7...." etc.

 

So, my questions....when it says use a separate ball of yarn for each color change, tell me I don't need a kabillion skeins of yarn to do this!  Do I go ahead and cut off the brown I still have attached to the project (I knotted it off when I started with the white).   Am I just keeping the brown and the white attached and using them as instructions call for it, assuming the yarn stretching over the body of the kitty will be on the inside when completed?  I'm not even sure of how to explain as I'm so confused.  Also, what does it mean to "twisting yarn where colors meet to prevent hole forming"?????

I have sent out a "Help" email to my knitting group, but does anyone here know?  I have LOVED knitting this thing and I already fear a big head when finished (I am the knitting queen of the world because I pulled this off!).  My hands are itching to continue and just pray I have it right, but then I don't want to cause myself or the kitty any undue stress.