Google two step authentication with iCal on iPhone

I recently set up Google's two step authentication and subsequently lost the connectivity to my Google Calendars through iCal on my iPhone 4. I know about application specific passwords; I was able to set one up for Mail on my phone and it worked perfectly the first time. Searching through Google's help pages yeilds nothing more detailed past simply informing an app specific password needs to be set up. Duh, thanks Google. However, I cannot see any way to enter a specific password into iCal on the iPhone. Is the password used for the Mail app supposed to cover calendars as well since it is techinically the same google account? Even so I've since deleted the Google calendars synced with my iPhone and now can't even get them back, which is why I'm lead to believe something fishy is happening here.

Any suggestions or solutions? Please help. Thanks!