Hotmail unable to connect to apple mail (2 step identification)

Hi, 

My hotmail account won't connect anymore to my apple mail on my MAC. Believe this is a hotmail issue and not an apple issue. I have tried to delete the account in apple mail and re-install but that won't work and the error keeps popping up. I use the 2 step hotmail verification and expect this to be the cause as when I try to add my hotmail account to the apple mail it won't even get to the 2 step authentication and just mention " unable to verify the account or password. The password is correct as I have used it to log in online. Please any help would be appreciated.