First of all what is the output voltage of the transformer since assuming it is 30v the power dissipation would be only 0.05w
Next can you check the current consumption of the ic when connectet to the bench psu? From the datasheet of the ic, it is capable of outputting a max of 1 amp and with a 18k resistor it would never come even close to that (again assuming the 30v transformer it would be less than 2 mA)
In this case i would try to use a 12v (or 9) linear regulator. Higher current capabilities and more stable voltages.
Also just in case, check that C3 in case it's making a short circuit.
Good luck