Ring of fire protection is great. You can get one in the area east of Nashkel mines (the place where a woman asks you to return an injured man to the Friendly Arm Inn), and/or by following the main story (you won't get it until way later). It stacks with any other fire protection you have already. I killed him with one melee. I had Imoen, Garrick, and Ajantis assault him with bolt/arrows of biting. I had Xan hit him with Melf's acid arrow, and Larlock's minor drain. sometimes I would have Garrick throw some magic missiles at the knight too. The tick from these attacks (not sure if magic missile counts as a tick) will hopefully disrupt his spellcasting.
I equipped my melee with the +2 large shield (you get this at Durlag's tower), full plate (if you are at this point, you probably found something comparable) , gauntlets of weapon expertise, a +2 longsword (aka Varscona), Kiel's helm (which you also get in Durlag's tower), ring of fire protection, and boots of speed. The potions I used were: potion of frost giant strength, oil of speed, and potion of magic blocking. When you engage the Demon Knight, he will dispel magic first, so use the potions *after* this happens, and remember to take the potion of magic blocking last, because there's a chance it could block the effects of the other potions. The dispel magic is followed up with a fireball. This fireball is the game's equivalent of an ICBM; and can easily lead to a TPK.
I wouldn't recommend smashing the mirror, because the summoned monsters will fight you too. If the monsters kill him instead of your party, you won't get any XP for the knight.
Edit: I recommend using a potion of agility. If your dexterity is already 18+, a potion of mind focusing would come in handy.
Post edited June 29, 2017 by jsidhu762