Thanks, everyone, for the tips. I eventually had to cheat in that cave (which I now know is the WRONG cave) to kill everything.
Is it me or does G2 seem to be totally digital as far as difficulty (I am playing on "normal") ? Digital meaning "really easy" or "really fricking hard". I find myself getting absolutely slaughtered in many, many encounters. When my battle alphas have a 10% chance to hit some floating eyeball with 800 hit points, what is a poor shaper to do but punt? It is stating to ruin the flow for me, reloading all the time. I might put it down and give G3 a try, or replay G1.