If you use a shadow potion, you can stand next to Josephine and repeatedly use your spin attack to do damage, without having her counter attack (clicking on the ground does not count as an attack, so you do not loose the invisibility effect).

Enough restoration potions will make you virtually invulnerable, as long as your opponent can not kill you in one or two hits.

To use traps you need to know the survivor's skill Deadly Gift. When you select that as your secondary skill, a menu will pop up with icons of each type of trap in your inventory, for you to select one. After that, you just right click on the ground somewhere to set a trap.
Scorpions will wander around (not a problem in confined spaces such as this); if you want them to follow you, you need to use the Aura of Command spell on them. Some people have reported that using Aura of Command cuts the experience points from scorpion kills (or summoned / resurrected creatures) in half, while others found there was no difference.