I've noticed in the tooltips for paladin " Heal " skill it says allies healed for x amount and the paladin healed for a much smaller amount, but I'm not really noticing myself receiving any heals while in the middle of combat.

Self-healing works only during effect of healing (green) powder

Aye, the self-healing mentioned in the tooltip refers to the amount that is healed when Healing Powder is active - reading the tooltip of Healing Powder may make a bit more sense out of this. We're aware this is not as clear as it could be, and hopefully it will get changed in the future. Regardless of the tooltips though, the abilities are working as intended, so hopefully clarifying this is all it takes to continue playing normally. :)