It is also best to eliminate the red caps prior.
I really don't want to derail this thread but while we're at it: I noticed that the red caps shape shift into their form from sheep. I remember passing those sheep earlier on the way to her tea house when they are still non-hostile. Has anyone tried killing them before the main fight even starts?
I had my imp left outside the house so that the red caps were dragged into the combat tracker before the reached the house. This gave me time to fight the hag alone for a few turns.
I really hate this "out of combat/in of combat" crap : /
