what on earth is going on

Muscle weighs more than fat. If you replace some fat with muscles you might even gain weight, while you will look thiner. The inches you lost off indicate that everything seems to be going fine!

Just to clarify....

Muscle doesn't "weigh more" than fat - a pound is a pound is a pound. However, muscle is denser and takes up less space than fat does. So, if you are losing inches but not pounds, you may be replacing your fat with muscle mass. This is good!

You might try to figure out what your percentage of body fat is. That will help give you a better idea of what is a realistic weight goal to shoot for. 126lbs seems kinda low for someone of your height. This site gives a good explanation of how to set your goals based on your body fat percentage:

http://www.healthchecksystems.com/bodyfat.htm

Say, for example, you currently have 30% body fat. That would mean that of your 160lbs, 48 pounds is fat and 112lbs is lean body mass (bones, organs, muscle). In that case, if you were to drop to 126lb losing only fat, you would then only have 14lbs of fat or 11% body fat. That would be very very low for a woman. However, what would be more likely is that in order to get to that weight you would end up losing lean mass (particularly muscle) as well as fat.

Obviously this is only an example, but I think it is helpful to think about more than just weight. There are a few methods you can use to try and figure out your body fat percentage, although none are perfectly accurate. Having an experienced person measure various spots on your body with calipers is probably your best bet, although there are tape measure methods as well as devices which measure electric impedence (?).

It sounds like you are doing great with logging your food and exercise. Good job! :flowerforyou: You might try tweaking your routine a bit - eating more at breakfast or snacks, adjusting your overall calorie intake up or down by 100-300 calories, drinking more water, trying new workouts, etc.