Right now I'm playing POtD with an Pale Elf Kind Wayfarer
1. I would raise DEX a bit instead of MIG. (actually INT 12-14 is OK for a paladin, if not for the dialogue options, you can raise it via good helmets early in the game). I wouldn't recommend dump CON. Since you can't (as a Good Paladin) benefit +1 MIG and 5% Endurance from the machine and +1 MIG from the Blood Pool (Maneha or Eder), you need to pick Untroubled Faith in that case...
2. I would pick Zealous Endurance. If you're not soloing you can pick the Modal Focus talent with your priest for example. Or simple pick up Pallegina for the second aura on your party.
3. Inspiring Thriumph + Strange Mercy is a life safer and works very good (since you're the DD with a 2-h Great Sword). The Sword and the Shepherd talent isn't really that powerfull but sometimes comes in handy in tough group battles. If you don't mind using a lot of healing scrolls, don't take this talent.
4. I wouldn't recommend Bloody Slaughter. It only triggers when 10 or 20% HP is left... Not really usefull, IMO.
Superior Deflection... well, in your case with a RES score 10 it might be a good idea to pick that talent.
5. For DD reasons I would go House Doemenels for the Crit talent.
6. I would recommend to pick Liberating Exhortation. Quite usefull buff and works as cleanse too. Still it depends on your party. You can pick Deprive the Unworthy if you're playing without a mage (like me).
7. I'm not sure, but seems that Scion of Flame is not really working for me or not as much usefull as it could be according to the description.
8. I would pick baby Sneak Attack (is it just me?) so you can co-op with your melee Rogue (custom companion in my group). In that case Coordinated Attacks (in my case Pallegina has it) might be usefull.
9. If you're not soloing It's a nice idea to pick up Pallegina (on POtD) as a defensive unit and play with 2 paladins. Give her the Green Paladin Shield (+5 defences). Take all Exhortations on her so she could buff it on you, raise her Lore to 10 so she can use all the scrolls (Moonwell, offensive spells).