Hughes will be a FA after the 2013 season and I have seen a couple of posters bring up the point that Hughes should be traded this off season in order to get max value for him. Perhaps a team with a pitcher friendly park that suppresses the HR could find lots of value in Phil who is still only 26.
Keep Hughes in the rotation through the 2013 season in the 3-5 spot and continue with his progress. He is a fly ball pitcher and as long as he pitches in a HR friendly park it's going to be something the Yankees and their fans will have to live with. Hughes could cut down on his HR/9 but it's still going to be on the high side. Hughes looks like he could be a good back end of the rotation pitcher and he is young.