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I struggled with this mission. My city was captured a couple of times while Faidaen was on an expedition. It worked on the third try, after I had time to learn the map.
There are 3 enemy cities on the map. One has no hero, the second has two strong ones, and the third has only one, Delaeb.
I immediately sent a support hero to the sea to collect everything floating and scout the area (I always do this). Therefore, there were almost no problems with wood. First, I captured an unoccupied city. It can be reached through a Dungeon. After capturing this city, I rushed back. I didn't touch anything near this city. In this city, I built a Capitol.
Then I went to the island with two heroes. After significant losses, I defeated both of them and captured the city. This is where the most difficult moment came. My transport ships with reinforcements and Delaeb were racing to this island. Delaeb arrived first. After the battle with her, Faidaen's army was reduced to only a few ents. After receiving reinforcements, Faidaen rushed to Delaeb's island. Fortunately, the city was defended by a hero who had fled from another island, and Delaeb was wandering nearby without an army. After taking the city, she came herself. All that remains is to search the entire area for upgrades and gather dragons. I don't think there will be any problems with that.
In my opinion, this is the most difficult mission of all the ones I have completed. Who knows what's next...