Kamikaze
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First, I sent Aeris – my loyal general – against him; he inflicted some minor damage on Karagon. After that, Karagon was left with almost no mana; he was sustained by demons until they died. And the Chain Lightning spell also did some damage to his ranks. So, a well-planned defense did its job. I had a lot of dwarves, and the Clone spell came in handy. But I can post the save file if you want.;)