Ive been trying to do this level now for 4 hours and getting really stressed. I have 3 torches and find my way through the cave past the bats and then i come to a waterfall and then the black smoke gets me. What do I do??????

I know the cave levels are a bit dificult, but you just have to keep trying.

Try to find your way remembering from were you come. When you find a waterfall, just extinguish your torch, walk through it and then re-ignite it.
If you do it quickly, the black smoke wont get you.

Also, if you find a light spot and your torch is out, just run there, dont wait to re-ignite it.