does it overshoot and stabilize? lower the pwm power level to 160. have it heat a little slower but not overtemp as high. temp should stabilize after overshoot, or pid calc needs to be recalculated.
if above does not work well then
lower this value
#define K1 0.95 //smoothing factor withing the PID
to
#define K1 0.45 //smoothing factor withing the PID
and keep lowering it until temp can stabilize.