Once your Elf healer gains the Valor move that presets whoever you choose with an instant revival when ever you die, use it at the beginning of each battle on her first, then on everyone else. Save your game and both your HP and AP will be completely refilled.
If you are low on HP or AP, find a save point.
Also, you can level up character abilities that do not damage foes. This is especially useful for the Elf Medicine item. You will never run out of AP, and the character creating items goes very fast, producing a lot of items. Cast Fellowship Grace with Belethor and the Haste Of The Elves ability with Idrial on whoever has the Craft Item Stone equipped. Go to Eregion after you get the Craft Item Stone. If you are having trouble completing Evil mode, save the game in Eregion, then exit out and go into Evil mode. This is an easy way to gain weapons, armor, and Elfstones. Successfully complete a chapter to unlock the ability to replay it in Evil mode.