The Hag seems a bit bugged right now because she is supposed to flee after a round of combat but instead she takes her invis potions - and then just hangs around. She used to invis and then poof gone.
Incidentally I try not to kill Auntie Ethel as she is the best resource for Potions in the game right now. She regenerates Speed Potions, Greater Healing, resistance potions and of course the incredibly useful Potions of Hill Giant Strength. Love my Auntie Ethel.