How do I defeat the Nanny Demon in DeathSpank?

Combat in DeathSpank has been pretty easy right up to meeting the Nanny Demon, then everything falls apart. I can get maybe one justice attack off before those fireballs annihilate almost all of my health, forcing me and Sparkles to retreat or end up back at the outhouse.

What's a good strategy for dealing with the Nanny Demon? I'm level 11 currently; did I wander into this situation way too early?

I had a hard time with the Nanny Demon, too - I agree that it seems much harder than the monsters that came before her.

I don't remember what level I was when I fought her, but I think I was a bit higher than that. Not sure, though.

Have you tried keeping your shield up while the fireballs are coming? IIRC, even if you aren't facing them with your shield up you should still take little to no damage. I did a combination of that, and lots of running around.

It can also be best to play it safe - don't keep attacking her if you don't think you'll survive for much longer. You would be much better off drinking a potion (or maybe eating food, if your dodging skills are up to the task).

I can't remember what level we were when we defeated her, but we basically cheesed her out by triggering her, then retreating to the path leading up to her on the left hand side of the screen.

She can shoot fireballs over the river of lava between the path and the arena where you're supposed to fight her, but the distance gives you more time to react and dodge. We took her out with a combination of Sparkles' ranged attack and Death Spank's crossbow.

I just used the Chicken Gun (or Cannon. I can't remember what it's called.) Just shoot the chicken gun at her and hold your shield while the chickens attack. With about 5 shots and a health potion, she's history. I found this the easiest and least risky method, however it takes longer. It takes about 5 minutes for the chickens to take her down, but if you hold your shield the entire time, killing her is a piece of cake.