Well - I killed her! What worked for me was to have my warriors drink the bloodlust and/or heroic might potions; have everybody blessed and protected by layers of Armored Realm spells throughout. I had a wizard constantly hit Naga with Melt spells to lessen her protection, some Slow spells. Others pummelled her with weapons, although either because of the Bloodlust or her protection several weapons broke or somehow disappeared from my inventory. If you can manage it, I would recommend having 2 backup weapons per warrior. Cure poison potions or spells and Heal spells helped prevent ANYONE from dying. (Although I tried about 5 times before all survived). Thanks all for the suggestion!
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