In the cave behind the waterfall - Find alcoves to fight from! Remember to hit and run - that way you only take on a couple of bad guys at a time. There is an elevator there and once you go down you run into overwhelming odds.
There is an alcove just to your left. Jump up into it. You can heal up and even shoot your bow without getting attacked if you can lure a demon up to you. It may be cheating a little bit but you gotta do what ya gotta do.....lol
