ahh thank you so much Wanze, and everyone else who assisted!
I knew it was something simple but i just couldn't get my head around wayfinder (kind of ironic considering the name lol). Read so many articles on WayFinder but to be honest, I understood that complicated sentence more then anything else!
So to sum up, I've created two separate chunks; myOuterTpl and myInnerTpl
myOuterTpl
myInnerTpl - This (if i understood correctly), adds the additional UL layer to the inner menu (level 2, 3 etc)
Final result
[[Wayfinder? &startId=`0` &firstClass=`first-child` &lastClass=`last-child` &level=`2` &outerTpl=`myOuterTpl` &innerTpl=`myInnerTpl`]]