Intro and question about All of these extra MFP calories

OK- I've finally humbled myself enough to reach outside myself and post publically. I do not do well with a lot of well meaning suggestions view the word "diet" as taboo and defeating- in and of itself.

I've been overweight through out my whole life, but in light of the fact that when I graduated from high school, to weigh more than 95 lbs. was shameful. I've tried most types of weight loss with little success; the most successful was Jenny Craig but I quickly tired of their food. Over the past 8 years, I have been on a weight roller coaster with an intestinal health battle (Ulcerative Colitis/Chron's Disease) and even coming to the point of literal medical starvation while viewing myself as still looking overweight.

Since Thanksgiving, I have lost 26 pounds on a "quest for better health" with my true goal being a desire to feel healthier. Weight loss was not originally a factor. I set a goal of exercising in four 15 minute increments daily with the mindset that if I could consistently perform even 1 of these sessions, I would be better off. I have had only 5 days where I haven't met my goal. On most days, I do 1 1/2 - 2 hours of cardio (low impact but sweat producing- due to a blown ACL) but many days I have done twice that with a little strength building mixed in.

My sleep habits are very poor, and I have been mixing up my eating plan for the sake of my brain more than my body. Mostly, though my caloric intake has been around 1200 daily and the only thing that I tend to go over on is sugar (which I paying attention to but not being strict about- after all-- 1 box of raisins will take you over your daily goal) My aim has been healthier cooking, smaller portions, no soda, only 2% milk with cereal, very little bread and 1200 calories with 3 meals and 2 snacks (protein bars- special k, fiber one, etc or fruit)- and 1-2 gallons of water a day (I need a little extra due to medical)

My question comes with all of these extra calories that MFP suggests. I understand the whole "starvation' issue of going below 1200 calories and the fact that I should be able to take in more calories with all of this exercize, but I just can't wrap my head around 1600-2000 calories because that it more than I generally took in with weight gain.

The weight I've lost has been erratic/sporadic- 5 pounds the first month, 15 the second, and a pound here and there. In laymen's terms (for those of you who have succeeded on this site), are you telling me that I need to take in 1600-2000 calories a day in order to lose weight????? I am willing to try, but I am VERY skeptical.

Thanks for the output.