The tunnel under Cyseal is the easiest place to start for combat, followed by the north west gate (the one that is open). If you lead opponents back towards the gate, or combat is triggered close enough to start with, the guards can come out to help you.
You can get experience around town, but it also helps if you loot everything you can get away with (sneak before stealing, if there is anyone around who could potentially catch you, and maybe save first). Better equipment can make a big difference at the start of the game, as could an extra spell or two (though you will not meet the requirements yet for many spell books).
There are a couple companions you can recruit as party members, who should make a significant difference in combat (unless one or both main characters took the Lone Wolf talent, which would reduce the maximum party size).
One is in the King Crab tavern, the other in the mayor's house.
The update tomorrow or Friday will include difficulty settings (saves will not be compatible, though, due to the changes and additions being made).