It took two hours. No blood vial, figured out why though. I had forgotten to go back to the statue to start the new part of the quest. Lulz, got my vial on the next go round.
Note: Spawn times are not 10-15 hours. Its at most 4 hours.
Here's the formula for defeating the demon:
Keep spare weapons and bandies in a bag so that you don't have to worry about making it back to your body without taking damage.
Drag the demon into the room next to the altar. This will shield you from most of the wards. He might drop a single ward inside the room. As long as it wasn't the poison ward, I was able to wail on him without getting killed.
Tips:
Run out of the room before he drops the red ball, he precedes the red ball of doom with "summons an ominous blah blah blah".
If you are tanking him, don't worry about the fire chasing you. Apparently, the demon fire and the blood vomits won't hit you if you directly next to him. Archers watch out though, its coming for you.
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