Android Password Recovery + 2 Step Auth. What happens? I recently enabled two-step auth for my Google account, and I'm happy to say it works fine. However:


Application specific passwords, like for Android are temporary, and the guide makes it obvious that you aren't supposed to write them down or save them anywhere.
When someone fails to unlock a password protected Android phone too many times, it allows the user to connect to a WiFi network and login with his/her Google account.
How does this apply to an account with two-step auth? Has anyone had this sort of an issue before? Is generating a new app-specific password enough?
You can use your normal Google Account password to unlock the phone (as long as you are connected to the internet), even if you have 2-step authentication turned on.

I have tested it on a Galaxy Nexus running ICS and another running Jelly Bean, and on a Nexus 7 running Jelly Bean. There might be a possibility that this was different on Android 2.3 but I don't think so.