Hmm, post your stats so we have a better idea of what to suggest, as for 1200 cals, forget that it is simply to low.
I can only tell you from personal experiance, i was consuming around 4500-5000cals a day up until i started working out. So i was a fat fuuurker yes LOL, and i cleaned my diet up and now sit at around 3000-3500cals a day and have lost alot of fat and gained some muscle as well. I too thought that i should consume hardly any cals but soon realised that its not just how much you eat but WHAT you eat as well that is important.