I have in fact solved this question. My process involved finding the distances of (h,k) ie. the center of the circle to the given lines and points, equating them to r (radius) and solving the three equations to obtain the three unknown quantities.
It had a lot of calculations. Can I use the fact that the given lines are perpendicular to each other to reduce my calculations? Is there any other, shorter method to solve solve?
My answer was $$(x-\frac 65)^2+(y-\frac{12}{5})^2=1$$ and $$(x-2)^2+(y-8)^2=25$$

The observation that the two tangents are perpendicular to each other would reduce the problem considerably. Note that the center of the circle lies on the angle bisecting line between the two tangents. It passes the intersection of the two lines at $A(1,1)$ and is 45-degree steeper than that of the line $3x-4y-1=0$ whose slope is $\tan\theta=\frac34$. Therefore, the slope of the bisector line is
$$\tan(\theta + 45) = \frac{\tan\theta + 1}{1-\tan\theta} = \frac{\frac34+1}{1-\frac34} = 7$$
and, hence, its equation $y=7x-6$.
Let the center of the circle be $O(a,7a-6)$, its radius $r$, the given point $B(2,3)$ and the two tangential points $P$ and $Q$. Then, use the fact that $APOQ$ is a square with $AO$ as the diagonal, i.e. $AO = \sqrt2r=\sqrt2OB$, or
$$(a-1)^2+(7a-7)^2 = 2(a-2)^2+2(7a-9)^2$$
After similification,
$$5a^2-16a+12=0$$
Solve to obtain the center of the circle $(2,8)$ and $(\frac65,\frac{12}5)$.