Mac Mail password issues; Account not verified.

My Outlook/Microsoft/Hotmail was compromised and it asked me to reset password, which I did. It was a rigamarole with texting codes etc. I set up the google Authenticator app. Now, other Apple devices accept this new password, but not my (yosemite) desktop. It claims account cannot be verified. Any ideas out there? All help appreciated. I don't understand what else MS wants me to do. Is it a Mac Mail problem or a MS problem? As I said, new password works on iPhone and iPad. Thanks