Toning is only going to give definition to your muscles IF there is no fat around them. The only way to loose the fat is by doing cardio. Yes, cutting to 1200 cals will help kick start the matabolism, but you're going to have to include cardio in there somewhere. You have to make sure those 1200 cals are coming from the right food also. Make sure your carbs are coming from whole grain wheat products instead of enriched products. switch from white bread to 100% whole wheat. If you eat margarine, try switching from hydrogenated to non hydrogenated. There are carbs in fruit so cut to 2 fruit servings a day and eat lots and lots of non starchy veggies such as celery, green pepers, green beans etc... Drink plenty of water and if you're a cola drinker, try switching to diet. Remember, regular cola has 155 cals to 12 oz and diet only has 2-5. A BIG difference. Try checking out doctor phils ultimate weightloss challenge books. There's the main book, the food guide and the cook book. This program has changed my life dramatically.
Good luck.