Welcome!
Despite your doctors warnings (and confusion) ketosis is not dangerous for anyone, including diabetics. It is often confused with ketoacidosis, which is life-threatening.
You'll love and feel so empowered by reading Richard K. Bernsteins book, "Diabetes Solution", and I recommend getting a copy of it! He is a low carb advocate, and the basic premise is not a lot different from Atkins, except there's no induction, and no OWL or climb up the carb ladder... the basic diet is not expected to change over time. He proposes 30 carbs a day (from veggies), spread out 6 for breakfast, 12 for lunch, 12 for dinner, with no snacking between meals.
Here's his website
http://www.diabetes-book.com/
Low carbing has saved me from obesity and diabetes. In addition to losing 130 pounds, I've gotten off of glipizide, actos, lovastatin, lisinopril and INSULIN! And taken my blood sugars that were uncontrolled in the 300's despite all those drugs, to an A1c of 5.4.
Looking forward to reading about your progress, too.
Do a lot of reading on this site, you'll be amazed.