I agree Smudge
may need a bit more insulin but she has a UTI and I believe is still on antibiotic so if she is still in a bounce, which I think is very likely, upping the dose right now is only going to muddy the waters more. If the 1u dose was that much too low, I don't think we would have seen a drop of almost 300 points yesterday. The drop we know about on Feb.3 was over 300 points only 2 hours after insulin so it's quite possible/likely Smudge dropped lower that day but we have no idea by how much. We have no idea how many times prior to Feb 3rd Smudge dropped by huge amounts so I think bouncing right now is a logical assumption. The drop on the 3rd alone might have made her temporarily more sensitive to insulin so her defences may be clicking in sooner than they normally would and upping the dose right now is just going to set off more bouncing which won't help find the right dose.
The caveat to this situation is that Smudge has high BG plus an infection which hopefully is clearing up now. I would strongly recommend checking her urine for ketones which can be done using ketone test sticks available at the pharmacy and shouldn't be too hard to do if Smudge is still peeing on the floor outside the litter box.
Petrina, how is Smudge acting? Is she lethargic or sleeping a lot? Is she eating well? Is she still having diarrhea or are her stools back to normal? Are you feeding her meals only at shot time or are you feeding her some snacks in between? Are you keeping her on wet food only or still offering some of the dry food?
You mentioned Smudge's pee is more yellow and smells like pee now. That's not TMI around here......it's good info!

Diabetic pee can smell sweet. Was that the odor you noticed before?
If she was my cat, provided there are no other signs of her condition worsening, I'd hold the 1u dose at least for both shots today and get pre-shot tests as well as tests at +2, +4 , +6 and +8 today to see what her entire day cycle looks like.
The key here is testing and without more data it's impossible to be sure what the best course of action is. I would keep any insulin increases to 0.5u because we don't know if the 2u initially prescribed didn't work because of the diabetes or if the lack of improvement was also influenced by the UTI.