The rules for XP rewards can be found here:https://2e.aonprd.com/Rules.aspx?ID=572
For combats each party member gets the default encounter XP budget as XP reward. So if your party is level 3 and wins a moderate encounter, each member gets 80XP, regardless of party size (You only modify the budget due to party size for encounter building, not for reward).
If your party is a different level than the target level of the encounter, modify the serverity a step up or down. So if the encounter is written as "Moderate 3" and your party is still level 2, it would be "Severe" for them and each party member gets 120XP (instead of 80XP for level 3) as reward.
Ok i can see where you're coming from there. but I still don't see anything about the "target level" for the encounter in the link u sent. And in Fall of Plaguestone there are a couple of Severe 3 Encounters towards the end. It's less of an issue for my lvl 2 party but how does that work for a lvl 1 party?
If a lvl 1 party (somehow) beats a Severe 3 encounter, does the EXP cap out at Extreme (160xp), even though the "target level" would technically push it one step beyond extreme?