I know people say you can lose weight eating right without exercise, and you absolutely can, but in terms of looking and feeling good it's impossible without working out. I used to be 5'6 and 190 and I initially tried losing weight just by diet and going for walks every day with some mild to moderate exercise at the gym twice a week. I ate strictly 1200 calories per day, went over maybe once or twice a week by a couple hundred, and I got down to 150/size 8, but I still felt fat and was heavier than I wanted to be. Now I get an intense 2-hour workout every day, eat 1500 calories per day, and fluctuate between 137 and 143--which isn't a lot of loss in numbers, but I'm now a size 2-4 and I'm toned head to toe. So I'm in agreement with the people who say you need to reduce your calories, but if you cut back to 1200 a day without exercising you'll just feel zapped of energy all the time and you'll still feel fat. Exercise energizes and rejuvenates you and ultimately that's what makes you feel better--dieting alone won't get rid of that feeling of being fat and your weight will still be distributed around your midsection and hips. It's not just about losing weight, it's about changing your body composition, which cannot be achieved without exercise.

I know you say that you don't have time, but the only way you'll be able to get into the habit of exercising is by forcing yourself to do it every single day and challenging yourself. It'll seem impossible at first, but after 3-5 weeks it'll feel impossible not to go because your body will scream at you to move. So cut your calories back to around the 1500-1800 range, DON'T COUNT EXERCISE IN MFP (their numbers are SO inaccurate), and work out at least 4-5 times a week. Light exercise isn't enough--make a point to get winded and sweaty every day. It's the only way you'll see results.