Green’s Dictionary of Slang

cut it v.3

[ext. cut v.5 (2)]

1. [late 19C+] (orig. US) to manage, to deal with (difficult) situations; to suffice, to satisfy.

2. [1950s] to accept, to tolerate.

3. [1980s] to surpass.

In phrases

cut it grand (v.)

[mid-19C] to act in a threatening, domineering manner.

cut it up (v.)

[20C+] to have an uproarious good time.

SE in slang uses

In phrases

cut it fat (v.) [SE cut (it) fat, to leave too much fat on a slice of meat when carving/cut v.3 + fat adv.]

[mid–late 19C] to show off, to make a vulgar display.