Lagging behind in levels, how do I catch up?

I have been playing Torchlight 2 on "normal" difficulty using LAN multiplayer with a friend. This is the first time we play and I'm not experienced with this type of games.
At the entrance of each quest there's an indication of what character level is recommended. Until now this always matched my character level (more or less).
Somewhere in Act II we find ourselves with level 27 characters and only level 31 quests available. It's proving too hard. How can we level up our characters before tackling this quest? All other side quests are finished, and I cannot find more monsters to kill.
Best Answer
In my experience, it's fairly rare on "normal" difficulty to be too far behind the enemy level range to proceed. Here's what I normally do when playing through the game:
- Explore each map fully. It's quite possible you missed some areas that have enemies or dungeons you didn't see.
- Always complete the side quests in a given stage
- Enter phase portal challenges when possible (go in prepared!)
- If you stumble upon a dungeon that's too powerful for you at the moment, continue fully exploring the map. It's pretty easy to level up a few times on each map just by fully exploring it.
- As a last resort, you can re-roll the world (as you did) and play through again.
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Answer 2
The most fun way is to replay your favorite dungeons. Dungeons will re-spawn after 10 minutes if you enter another different dungeon. Most dungeon bosses will re-spawn with the dungeon.
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