When I had this car running under 12 psi on wastegate only, it actually ran okay. It pulled smoothly and didn't do anything weird. Now that I am turning boost up over 12 psi (I tried up to 15-16 psi) I am having terrible compressor surge under power (part throttle and WOT) above 3,000 RPM, when the turbo is fully spooled. I tried turning boost up two ways - 1, using a DIY Auto Tune electronic boost controller and tuning, and 2, using a stiffer wastegate spring but leaving the boost controller off.
The compressor surge is audible as a flutter under power and you can feel the engine isn't delivering power quite right, and the boost log has a pronounced ripple in it.

Is it possible this turbo is too big for my engine? I assume T04E-61 means it's a 61/82mm wheel but I haven't measured it. My very limited understanding of turbo builds is that if I'm getting surge like this under power, the turbo is making more pressure than my engine can use.
If this turbo is too big, what should I replace it with?
Here is my engine bay. The Cartech intercooler might look retro-cool but I hate how it is in the way of the valve cover.

Thanks
Steve