Your pawn and yourself will level up/learn with every kill you make on each type of enemy. For example, it requires 500 goblins to reach the high tier of the knowledge required, and the others are just as bad. For example, fight 120 Cyclops to get to the high tier of that one, and read a help scroll to gain the second one. Keep trying; go out and kill, revisit, and kill some more. You will gain levels, as well as items and money. This can get very repetitive.