We present GazeGen, a user interaction system that generates visual content (images and videos) for locations indicated by the user's eye gaze. GazeGen allows intuitive manipulation of visual content by targeting regions of interest with gaze. Using advanced techniques in object detection and generative AI, GazeGen performs gaze-controlled image adding/deleting, repositioning, and surface material changes of image objects, and converts static images into videos. Central to GazeGen is the DFT Gaze (Distilled and Fine-Tuned Gaze) agent, an ultra-lightweight model with only 281K parameters, performing accurate real-time gaze predictions tailored to individual users' eyes on small edge devices. GazeGen is the first system to combine visual content generation with real-time gaze estimation, made possible exclusively by DFT Gaze. This real-time gaze estimation enables various visual content generation tasks, all controlled by the user's gaze. The input for DFT Gaze is the user's eye images, while the inputs for visual content generation are the user's view and the predicted gaze point from DFT Gaze. To achieve efficient gaze predictions, we derive the small model from a large model (10x larger) via novel knowledge distillation and personal adaptation techniques. We integrate knowledge distillation with a masked autoencoder, developing a compact yet powerful gaze estimation model. This model is further fine-tuned with Adapters, enabling highly accurate and personalized gaze predictions with minimal user input. DFT Gaze ensures low-latency and precise gaze tracking, supporting a wide range of gaze-driven tasks. We validate the performance of DFT Gaze on AEA and OpenEDS2020 benchmarks, demonstrating low angular gaze error and low latency on the edge device (Raspberry Pi 4). Furthermore, we describe applications of GazeGen, illustrating its versatility and effectiveness in various usage scenarios.