how you beat the octocupus?

[YENKO]

Solved the Redbeard/Jim tasks, went to king Darion for my reward and my new orders. So i met the guy in the forest, returned to the castle and king Darion gave me my next task, to kill some Duke in the Mines. I entered the dwarven mines, killed 2 or 3 manageable enemy armies and hightailed out of Dodge City, mobs too strong
Now I am buzzing around in the Islands and trying to kill the Kraken. I am lvl 11 now, and it seems, I cannot level further here. The friggin Kraken, I cannot beat him. I have no Resurrection spell and none of the spells for summoning..something/someone. AT start I am doing OK, but round after round, the Kraken is spawning larger and larger stacks of Devilfish: I quitted when the stacks reached 450 devilfish each. No way in hell I can beat that monster, he has like total 44000 hit points
Need advice, some cofee and..a drink methinks! Kraken with zero losses? How in heaven is that possible? I am missing something HUGE here grrr..