Something I'm doing wrong

It sounds like you already know a few things you could change. To maybe simplify a few ideas to try, these are what have worked for me.

Mentally:
1.) You will want to give up. Don't. Keep going. You can do this!!!!

Physically:
1.) water. drink it. drink lots of it.
2.) sleep. get plenty of it.
3.) WALK. Walk with your hubby, walk with your kids, walk with your dog, walk and call a friend, walk alone, walk and listen to music, walk slow, walk fast. WALK. Every day!!!!!!!
4.) Eat balanced calories - get protein, get some carbs, try to stay away from processed foods. Eating breakfast may be a good place to start, especially if it's healthy. (I'd suggest starting with two eggs scrambled - not too much food to shock your morning stomach but will get you off to a good start).

Good luck!

First thing, it is really very important to eat breakfast everyday. When you are asleep, your metabolism slows down. When you eat breakfast, that signals your body that it should get ready to start working and burn calories. Your breakfast kind of acts like a kickstart for your metabolism. Then it is usually suggested that you eat a small meal every 3 hours. That keeps your metabolism going.

Try eating more natural foods like:

Whole grains (quinoa, brown rice, wheat berrys, whole grain bread)
Fruits and vegetables, eat as mush as you want of these, they are really low calorie and won't make you gain weight
lean protein sources (chicken, turkey, fish, shrimps, greek yogurt, beans (fairly high carb though) and egg whites or whole eggs

Although you are staying under the calorie goals, sometimes processed food makes it harder to lose weight. You should also try to have atleast 1200 calories a day or else you could go into starvation mode. Slowly build up the calories if you are afraid of weight gain. Each week add 50-100 calories more than your regular intake until you reach 1200/ day. If this still makes you gain weight, try to excercise to burn it off, but its important to get those nutrients in which is almost impossible eating under 1200 calories.

If you find it hard or inconvenient, go to Whole foods. They have prepared meals which are organic there are lots of options. If not, make sure you always have a container of grains, fruits and vegetable ready to eat if you need a quick meal and just add a protein source.

If you don't feel like eating breakfast and your not very hungry, try half a banana and a latte made with skim milk. It will get you metabolism going and keep you full until lunch, so you are more likely to eat a healthy meal.

Also, if you are craving something unhealthy, make a limit of 3 meals a week or whatever you think is doable for you and lower it down until you have 1 or two cheat meals a week. The less unhealthy food you have, the faster you will lose weight and the healthier you will be in the long run.