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resurrection is granted in the same place as blinding, if the hero has the "Skilled Light" skill. In my opinion, the strength of the new Karalam spell is somewhat diminished by its randomness; the real problem is the imbalance of the "Empathy" spell itself. The demon should have resistance close to 100%; I don't know exactly how it's calculated, but he has Marbas's spell at level 40 + 20% from armor + gnome luck. I don't remember spells ever successfully casting on him.
P.S. Maybe it would be worth posting complete lists of spells that can be obtained through quests, etc.?