When you work out your body needs more fuel.
Calculate your bmr and eat the calories you need for you height, age, weight, gender and activity level, as a random number like 1200 can actually sabotage what you're trying to achieve here...
And going under 1200 cals is not recommended.
I also agree with Bexxx, you should give your body more time.
Muscle also weighs more than fat, it sometimes looks like you're not losing much on the scale, while you're losing inches all over your body.
Personally, I find it better to track my weight loss by measurements than weighing.
Also, drink lots of water!
It really DOES help with weight loss, check out the
On Topic and
Advanced Weight Loss sections for good reads and tips.