The game is suddenly becoming hard at a certain moment!

[Feagh]

Hi!
I played about 26 hours in the game, my party is 8-9 level (only in-game characters), difficulty: normal. I think I completed all my stuff in the west:

Spoiler

Duc's court and public unrest, Defiance Bay is burning, I go east through the map where a large pool of water is drained and a pass opens eastwards

So I venture out to the East on the paladin girl's quest and I get my ass well kicked on the way!! Before, I steamrolled through the game without too much effort, I play with minimum party AI and a lot of  micromanagement 'cos it makes battles more fun.
The party is: Me (cypher - crowd control), Aloth (mostly damage dealing), Monk (healing and defence spells), Chanter (summoner), girl paladin (tank + healing), Eder (tank)

Is it because I still have to level up, or did I screw up my classes and they become inefficient due to the spike in the difficulty? 

Any advice would be appreciated. I read that completing the game on Normal is trivial, and the game was quite easy up until now.

[Chaospread]

Who beat you? Pallegina quest doesn't involve fights. You died from the spores and leaden key group in Stormwall Gorge?

How your monk can heal your party?

[Boeroer]

I guess the Monk is actually a Priest?

Did you by any chance go to Crägholt Bluffs?