I cut mine first, then I just took it off. You need to get two shorter bolts (make sure same threads) leave the steel case saver in place. Take off the plastic part then bolt the case saver back on and you're done. It looks better and you won't have mud and chain lube gunk collect there.
About those Pro Armor Fat Pegs: The webbing that goes over to the frame, that you have "buckled" in place - you don't need those, just cut them off with scissors and burn the ends with a lighter. They get in the way of your foot and can catch your boot in there, and that's not good!