The demons can be ressed by the resurrection spell. Still, that was a battle I didn't plan on winning without losses, although for a little while it looked that it can be done. The only thing that stopped me was the fact that karador used necro call on my fallen stack of priests (they were supposed to be a scapegoat and die) just before I had to get a turn and ress them with the inquisitors (I had no mana for ress lvl 1 spell at that time).
Besides, I already planned to go on and replace some of the armies in that line-up with fairies, and since I had to return to the elven lands through the book and stack up on more appropriate troops.
With any luck, and with the setup I proposed, Karador can be beaten without a loss, provided you're patient. I may not have lost 400+ priests if I replayed the battle, but since those priests were expendable, and I did not plan on beating the game without losses, I let them die.
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