I'm 18 years old 5'7" and 155 pounds. I work out 2-3 times a week to the Jillian Michaels 30 day shred workout on level 2 and eat 1200 calories a day.

Losing weight the natural way is very important to me. I feel like I'm getting stronger but the fat on my body doesn't seem to be burning off. I feel like I'm just adding muscle underneath my padding haha.

Am I doing something wrong? I know that I'm really not excersising that much but even when I was doing cardio everyday I didn't loose any.

Please help!

You forgot to mention how long this has been.
Muscle weighs more than fat per volume. So yes, it can take a while for the scale to show lost weight.
Also, 1200 calories isn't the only part of eating. You have to combine protein and fast/slow carbs at the same meal, and portion them correctly.
You also have to drink a lot of water or weak watered down beverages. Water is actually needed to burn fat.