The problem with doing solo unit fights (black knights excluded) is that you don't generate enough rage, probably just enough to do the 3 treasure digs. This also means you don't get to level up your pet dragon too much.
For tough enemies like paladins/dragons/etc. the pet dragon ability Ball Lightning and Eviln are quite useful. These two attack options take out a percentage of the enemy stack, no matter what defense or resistances they have.
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