Windows Live Writer Blogger Account Error

Google actively encourages its users to enable two factor verification for passwords. While this increases security, it also causes minor inconveniences.
After a long inactive period I have decided to blog more regularly and for that installed Windows Live Writer, but while trying to configure it for my Blogger account it complained about my password. After several attempts with various combinations, I remembered that I have set up a two step verification for Google services, so I have to manually grant permission to all third party applications. There is even a specific warning for applications connecting to Blogger.

Some applications that work outside a browser aren't yet compatible with 2-step verification and cannot ask for verification codes, for example:
Applications used to access Blogger
To use these applications, you first need to generate an application-specific password. Next, enter that in the password field of your application instead of your usual password. You can create a new application-specific password for each application that needs one.

After you give a name and generate a one time password problem gets solved.