Which burns more fat- aerobic or muscle exercise?

No!

Strength training and weight training also burn fat, although not as much as aerobic. A good exercise program will incorporate all and not just depend on aerobic.

Also, eating a good balance of macronutrients helps your body to get out of "famine" mode (its need to store fat) and allows it to better burn fat. The 1-2-3 ratio is good--1 part fat, 2 parts protein, 3 parts carbohydrates, 5-6 smaller meals daily.

Incidentally, you need carbohydrates to help protein synthesis--and by carbs, I mean good quality complex carbohydrates!