Why is Don't Starve Together laggy?

I am playing with my friend who is 2 miles away from where I am.
Both of our connection is over 20mbps according to Internet Speed Test. We have 24mbps net connection(2mbps upload) and we have closed almost any other program which consumes the internet.
It says good host in the game(when you press tab) and the ping is around 30-40.
But for some reason the person who is not hosting has a very laggy play. We each tried hosting and each time we had lag issues.
My friends computer is Lenovo Yoga 2, i5, Windows 8, 8gb ram.
Mine is a desktop, 32gb ram, i7-3930K, win8, nvidia geforce gtx 760 graphics card
So I don't know what the problem is. Is the game buggy? I checked out all the forums and everyone seems to be playing fine. So what then?
Best Answer
There are a lot of posts complaining about the lag in the game, so you are not alone. From the sound of it, it's definitely a bug; given that the game is still in beta, hopefully the developer's will fix it before the game is released.
Some users have reported successful elimination of lag by running a dedicated sever.
If that's not an option, I've only found one workaround, but it's not a good one. The linked poster noticed that the more the host explores, the laggier it gets for everyone else. So, the workaround is for the host to not explore very much.
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Answer 2
If you can open a port, consider using a dedicated server on your pc.
As of our last test together, I think that the server doesn't run on our pc but on Steam Servers etc.
So if you try to use a dedicated server, it might and probably will be faster.
Please see this link to see how you can install it.
Answer 3
One thing is to have lag and another to have low FPS, given your specs I'd say it's a lag issue, however you might want to measure your fps, just in case.
Now about the lag, you may have a great connection and still have lag issues. Lag spikes may arise if there's something else taking over the connection. A download for example, would take most of the bandwidth and interfere with the game.
Note that this download might or might not have been started by you. There might be another person on the network downloading something or a program might be updating itself.
You can use programs such as Net Limiter to monitor your computer network traffic an find possible leaks.
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