Level 7 is "about" right if you run through the first part of the Broken Valley and start to do the plot. Mind Reading eats a lot of XP at first.

The first part in Broken Valley has Level 4 and 5 foes as "top" foes, so I made never much more than level 7. Those level 8 skeletons found outside the first part of BV are always a quite nasty piece of work (it quickly gets better, as everyone here knows ;)).