Lead using your body and only fine tune with your arms. Staying constantly connected to your partner and leading her with your body will naturally create smaller steps both in closed position and when in open position or doing cross body lead variations.
Using this method the cross body lead for the guy (if dancing on 1) becomes the first three steps (1 2 3), then a tap in the direction you want to lead her (and therefore naturally leading her with your body) on 4 and then stepping back (i.e. moving in the opposite direction) on 5, 6, 7.
Through this your leading may change from a feeling of push connection to pull connection (e.g. CBL into an open break), but always a constant soft connection using the body to lead.
The same pretty much goes for dancing any style although in the Cuban basic step the dynamic is opposite - i.e. step back and because of your body connection lightly pull the girl towards you, then step forward and lightly push her away. Bouncing off each other like two spring things. LOL.
These steps can be as little as an inch or so, it's all about the connection and the spring effect not how far you step. When you get the connection right the steps will be small naturally.
Part of the difference between how Cuban, NY and LA dancing is percieved differently is to do with the spot where the guy moves the girl to and how much he moves himself.
In LA style the guy often moves very little and he moves the girl from one side of him to the opposite side of him in CBL moves, which makes it look faster and more punchy.
In NY style the guy moves the girl less in CBL moves and he moves himself more equally. This is partly why NY girls complain about LA style guys should make smaller steps, actually what they're saying is move yourself more not me!
In Cuban you both move, sometimes the guy is in the centre and the girl is moving around him, in other moves the guy moves a little more around the girl. The essential here is small steps keeping you moving and lots of variation.
This is a generalisation and more of a guide for beginners to these styles or if you're a confused mixer of styles. To really understand what I'm talking about look at some video clips of professional dancers of each style and compare them.
Lastly if you've tried everything to make small steps and had no luck then tie both your shoe laces together and that should sort you out.
