Level isn't everything here... a bunch of 5's proved too hard for me (near the cave) at level 5, so instead I wiped the lvl 6 orcs and the entire black cove. It was pathetically easy (and of course I did get 6 in the meantime). You don't have to fight enemies at their exact level, find which groups work for you and work from there

.
Yeah I finally took the orcs and cave, but even at level 7 the Skeleton guy on the throne with his girlfriend and summons is kicking my butt. Still trying to figure out who to take out first in that battle. But they are the last encounter before going on to the North side of the map.
EDIT: BTW, teleporting into the house with the other pyramid didn't work. Apparently I can't teleport through windows.