2. d4 Check out the Scandinavian opening here. 1. e4 d5 2. exd5 is usually played. Then black has to bring his queen out early, and you can harrass it with your minor pieces while you develop.
I can see that you were trying to follow the rules here - you are developing pieces, getting center pawns out there, etc. But you aren't doing it in a very safe way. Both you and your opponent got carried away with the queens too early - for example, if you played 7. g3 then black has to move his queen somewhere, say ..Qe7. Now you play 8. Bg2 and white can now castle, and you can save this game.
But I think it is time for you to learn the first few moves in the Scandinavian opening. You will have a much better game! It is also called the Center-Counter. Best of luck!
Its very humiliating defeat for me, kind of puts my morale down. Anyway, could u please tell which areas was i lacking in and how can i improve? Is there any area where i might have improved. What were the errors?