Hi llk3721,
You very well may have "runner's knee," but I can't diagnose it for sure. If the pain gets intense and doesn't go away after several days, you should check with your doctor.
You should be congratulated on your dedication to running and awesome exercise program. Your mileage is impressive. The increase may also be contributing to your knee problems.
Runner's knee is simply an irritation of the undersurface of the kneecap. However, it can get pretty serious, so you will want to confirm if that's what you're experiencing. You can treat it by resting your knees so you can lesson the inflammation. You should take several if not more days/weeks off of running. You may also want to insert some addiitonal activities into your regime to stay strong but to avoid exacerbating the problem, like swimming or cycling. When the pain is gone, return to running but increase your mileage slowly. You'll want to be sure you are also strength training and helping to build up your quadriceps and hamstrings to support the knees.
You are doing so well and I'd hate to see you have a set back. Take care and try this. On another note, the fact that you are losing inches is terrific- it's the best indication that you're burning fat while building lean muscle mass.
Good Luck,
Paul