On 500 calories your body will start burning muscle not fat as it consumes itself in order to survive.

I think cutting back to 1100 OR eating the same but adding some extra exercise is a much more realistic goal, they say the difference between losing and not losing usually only amounts to 100 calories a day.

BTW - If you've cut back and you're waking up hungry every morning then it's a sign that your metabolism is still working on the calories its getting. If you're waking up NOT hungry then it's a sign you've cut back too far and your body is going into starvation mode. Whole foods like lots of veggies, WHOLE GRAIN cereals and legumes (even baked beans LOL) will feed your body AND ramp up your metabolism at the same time.