My birds are completely comfortable with me, outside and inside their cage and will fly to me whenever I whistle. However, I am trying to get them to step up and they get really freaked out if I try to touch them. The only exception is when they're eating on my hand and they accidentally graze against my fingers.
Can you give me advice on teaching them?//Is it better to do it inside or outside of the cage?
I wouldn't try to touch them to get them to step up. I got my budgie to step up by feeding him inside of his cage with a flat hand and letting him step onto my hand if he wanted to. Then I slowly introduced the idea of stepping onto one finger (and it took a while!). I would hold a piece of millet just out of his reach so he had to step onto my finger to get it. You don't want to push up on their belly to get them to step up- imagine if every time someone wanted you to sit, they came and pushed down on your shoulders. You wouldn't like them very much, would you? I'm still in the process of getting my budgie to step up without a bribe, but he's very willing to do it now.