Babies are far more efficient at removing milk than pumps. If you're able to remove milk with a pump after baby is fed, what makes you think they need the formula after? In the early days, my girl would act hungry but actually needed to burp. Reflux could also give hungry signs, because drinking soothes it. Try removing more formula feeds and see how you go. The best indication of being fed enough is weight gain and output. It's likely you're providing more than enough for babe already without the formula. Bottles are also easier to feed from and babies can be over fed with a bottle.
1-2 oz is a lot giving that you just started. Give it some time and be consistent. You will have a lot of milk supply in no time .
I just started producing 5 ounce on each breast and I started hand expression a week ago
If you want to switch from formula to breastfeeding or at least encourage more breast than formula I would offer the bottle in between breast rather than the end of a feed. This way they associate satiation with the breast rather than a bottle.
1-2 oz is actually a decent amount, especially after baby has fed. I have an oversupply and it isnt a constant stream while I am pumping so no issue there!