If i eat 1, 200 calories a day, should i exercise until i burn all 1, 200 calories off to lose weight or will your body go into starvation and stall?

Not necessary: Body needs some calories , to keep vital organs to function( the basal metabolic rate ) need 1500 cal. . Then it is like money in the banks , what you have , what you are putting and what you are taking. Brisk walk for 1/2 hr you will burn 200 cal , to get et rid of i lb of fat you need to burn 3500 cal . It not starvation hard work to burn reserve fat , not going to happen over night, work on it.

Weight Loss: Safe weight loss with calorie restriction and exercise is considered 1-2 pounds a week. This means a difference of about 3500-7000kcal a week difference. You can establish your caloric needs for your desired weight. You can work to that goal. Too restrictive a calorie restriction will rob your lean mass (muscles) of needed energy which can lead to fatigue and weakness.