Alli -- what don't you understand?
This cycle, Smudge is bouncing. He wasn't used to those lovely green numbers and coupled with the skipped shot, his numbers bounced almost to the moon. Bounces typically occur due to numbers dropping into a low range, a lower range than your cat is used to, or due to a fast drop in numbers. You got some great advice from Suzanne and from JL.
A couple of things to keep in mind. We are pretty aggressive about insulin in a cat that's post-DKA. Don't immediately think about skipping a shot. You could always give a reduced dose. Bottom line, though, if you're not sure what to do, do what you did -- post and ask for help.
Food and insulin are key in a post-DKA kitty. Ketones arise because your cat is metabolizing fat and producing ketone bodies. That's why food is so important. I'm delighted to see that Smudge ate breakfast like a champ.
Ignore the vet who said 2 meal a day. If you know anyone who's diabetic, they don't starve themselves between meals. It leads to wide swings in blood glucose and for cats, who have fast metabolisms, it makes no sense whatsoever. For some cats, not feeding past nadir may make sense but for now, with Smudge, several small meals is just fine.
Low numbers can be nerve wracking. You did great!!