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Level 1 - ETLBAT
The answer to this puzzle is:
Words: LATTE, BLEAT, BLATE, BETTA, BLAT, TATE, BLET, TEAT, TEAL, ABET, BLAE, BATT, BATE, BALE, TELA, ALT, ETA, LAT, LEA, TAT, BAL, TEL, ATT, ATE
Bonus words:
LATTE, BLEAT, BLATE, BETTA, BLAT, TATE, BLET, TEAT, TEAL, ABET, BLAE, BATT, BATE, BALE, TELA, ALT, ETA, LAT, LEA, TAT, BAL, TEL, ATT, ATE