You are well advanced into the game ;) For Shadow Teddie I was about level 36, and I used Emperor Setanta because of his very good attack abilities and Priestess Ganga for her Mediarama healing ability.
Emperor Setanta is level 34 and he's obtained by fusing a Hierophant Unicorn + Devil Incubus, while Priestess Ganga is level 29 and she's obtained by fusing Empress Yaksini + Sun Gdon.
Have you tried the optional boss at the Steamy Bathouse?
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