I lost 125 lbs and lost some muscle, but also re-earned some. I don't have the muscle I used to have at 300 lbs, though.
One of the amazing things bodies can do is grow and shrink at the same time, but it can't do both superbly. In fact, to gain muscle superbly, you have to gain some fat. To lose weight superbly, you're likely going to also lose some muscle).
i want to lose weight and also build some muscle, ive have been hitting the gym and cutting my calories by 500-900cal for the past two months, while i am seeing some muscle growth, its not very substantial or something people around me will notice, ive also lost about 2kgs which is not much
Not too shabby. Sounds quite right.
Here's the thing -- you're not only preserving the muscle you had from being the heavier body you were, you built on that. Most people on a cut who aren't lifting will lose some muscle mass too given not only the smaller need for muscle in a smaller body, but also some catabolization (the body eating muscle cells for energy). You aren't just not losing muscle, you're gaining some.
Don't worry that 2 months work isn't something to see yet -- your habits are your destiny -- it'll happen.
A loss of -2 kgs is over 15000 kcal not eaten, but you'd expect more out of -700 average deficit for 60 days (-42000). Is your food tracking in real time? Complete including condiments, cooking oils, salad dressings, and other (often) forgettables? Are you checking portions with a digital kitchen food scale or measuring cups or some other reliable means? These self-reporting problems are the most common ones.