This bike is new to me, it already had the Stage 1 on it when I bought it so I'm not sure if it had a surge before the upgrades. My TC 88 efi I had previously did not surge like this.
I have been riding bikes my whole life and am very familiar with the how to work the friction zone of a clutch and how to maneuver in slow speed situations. I'll check for air leaks, if thats not it I'll take it to the dealer.

 

It is still within the factory warranty period, take it to a dealer.

 

I don't think anyone can figure out what you mean by "cruising at 1100 rpm". There really isn't any situation where you should be operating at that engine speed so who knows if what you are describing is a problem or not.

 

Ok I didn't mean to say cruising more like riding through say a parking lot at slow speed or stop and go traffic. Any way I will check for airleaks then go to have it looked at by the dealer.

 

It's a different motor and transmission than your previous bike, it will be different. Get your revs up and use the friction zone. The bike isn't surging, it's bouncing off the gear. You can't expect to be in any gear at 1,100 RPM with full clutch engagement.