WHOA....
1st off you're not "miss piggy" by any means, 2 - you have a great figure - very hourglass, 3 - really don't get too focused on actual bodyweight it's a number we get hung up on - your actual body fat and a mirror are what your guidlines should be and perhaps a measuring tape.
You can do both, add muscle and loss fat but one will have to take some precedence over the other. I would focus on figuring out a clean diet that will fit into your budget (your current food choice are not appropriate for your goals) Then really focus on trainning and adding muscle (looks to me you already have a good base to start from) and don't focus on the scale you could maintain the same weight and shrink over all as your body composition changes.
Black03SVTCobra said:
I believe 1200 cals a day is a little on the low side, but not 100% sure. I will let someone else chime in on this. As for food that you should include in your diet these are the basics-chicken breast, tuna, green veggies, whole wheat bread,brown rice, yams. flax nuts
^ You should be eating at least 1500 if not 1600 to start - you will have to play with this and see how your body responses. You have to think of your metabolism like a furnance - no fuel, no heat - no heat, no weight loss. On the flip side - over feed and the furnance will be straining to get the job done.
A general food list:
oatmeal
cream of wheat
potato
sweet potato/yams
rice brown/white
cottage cheese (this doesn't work for everyone)
all green veggies
peppers (red yellow too)
eggs
egg white protein powder
whey protien powder
chicken
fish
pork
lean beef
eggs
almonds, walnuts, pecans
peanut butter (this works for a lot of people)
avocado
olive oil (salads/ veggies)
Fruits - (some people can diet with them some can't)
berries
melon
apples
peaches
tomatos
bananas (small and on occasion)
Avoid most dairy (I know - the cottage cheese - it has protein too. dairy's like fruit some can some can't)
Avoid anything processed, white or prepacked in a box (except some brands of rice)
Stop by the women's forum and read all the stickies and post up and introduce yourself to the ladies, you'll find a lot of support there.
Welcome, and good luck!