First off, that latency setting is very high and would be a problem. You haven't said what your buffer size is on your audio interface.
You need to bring the buffer size right down on your audio interface for recording audio (and take it up for mixing).
I run mine at 64 buffers playing and recording then move it up to 1024 for mixing etc.
Also, you may have to adjust your 'Delay Compensation Threshold' for Midi Instruments.
I'm on the current version of Nuendo 12 but, your preferences should still be the same on your version of Cubase (see below).
Normally, you can do a loopback to set it accurately. But maybe you can just move the figures by trial and error until you are somewhere close.
Of course, it might be something else, but I would start with this for the Midi side of it.