I get this confused with multi target damage. But how do you apply quake damage for characters that can use two damage. Is it two total damage divided how you want against adjacent enemies hit, or is it two damage for each adjacent enemy hit?

That's the one.

EDIT:
The reason for this is:
Page 9 - "When an attack hits, the damage dealt to the target is equal to the attacker’s Damage Value, modified by any game effects."

That's the rule to cover combat in general.

Unless otherwise stated, a figure is dealt whatever the damage value is when hit.

The reason why you divide it up on ranged combat with multiple targets is because it is otherwise stated under "MULTIPLE RANGED COMBAT TARGETS" in the rules.

Thank you!