SOLVED! Windows Live Mail or Outlook Cannot Connect to Hotmail Account, Keep Asking for a Password

If you're using HOTMAIL or OUTLOOK.COM, and recently you have started the 2-STEP Verification (i.e., you've asked Microsoft to send you a verification code to verify your mobile device or computer), the chance is that YOU NEED TO ENTER THE App Password generated by Microsoft instead of the password you set for yourself.

SOLUTION:

1. From your web browser, logon HOTMAIL / OUTLOOK.COM mail. You can successfully logon, because your password is correct.
2. Go to your Account, Overview, then Security Settings
3. Scroll down the page to find the section "App Passwords"
4. Click on the click "Create a new App Password"
5. Copy the App Password and paste it on your Email Client (like Windows Live Mail or Outlook) when it prompts for a password. IT SHOULD BE THE APPS PASSWORD, NOT THE PASSWORD YOU YOURSELF MADE.

Sorry, life is getting complicated!!