I put together this jsperf to see if there’s a difference between defining your function and then using it or defining it inline when looping with jQuery.each. You can try it yourself if you like, but here are the results:
I compared using a pre-defined function with using a function defined inline.
var body = $('body'); // cache this for use with both
//pre-defined
//
var doSomething = function () {
body.append('<div class=' + this);
}
$.each([0, 1, 2, 3, 4, 5, 6, 7, 8, 9], doSomething);
// inline
//
$.each([0, 1, 2, 3, 4, 5, 6, 7, 8, 9], function () {
body.append('<div class=' + this);
});
//pre-defined
//
var doSomething = function () {
body.append('<div class=' + this);
}
$.each([0, 1, 2, 3, 4, 5, 6, 7, 8, 9], doSomething);
// inline
//
$.each([0, 1, 2, 3, 4, 5, 6, 7, 8, 9], function () {
body.append('<div class=' + this);
});
Here’s a graph of the results of different browsers performing the test:

Don't take this as an indication of the general performance of the browsers mentioned. Some were run on Linux, some on Mac, one in Wine on Linux, and some in Windows VMs on Linux.
The difference is negligible, so use whichever looks more readable to you. I prefer defining my functions inline, and will now do so with confidence.
Bookmarked, I love your site! :)