Final Fantasy Tactics Walkthrough

Another battle with Miluda isn't as difficult as it may seem, although this time the objective forces you to defeat everyone and not just the primary target.  Focus on the Wizards to begin with, because they can deal heavy damage. Once the Wizards are dealt with, or simultaneously if the opportunity arises, it's wise to pick away at Miluda as she has relatively high HP and it will probably take several turns to knock her out of the way. If you have ranged attacking available, taking the hills on the right side of the starting point of the map can help knock out the enemy mages without taking as much damage.

If your unit speed is not overly poor compared to Miluda's, it would be wise to bring along a Wizard or at least someone with their skillset as a secondary to hit Miluda before she can get within range. Additionally, magic is less likely to be blocked or evaded by Miluda relative to physical attacks.

A Monk with Chakra is really handy in this battle in case multiple people get hurt because Chakra targets everyone surrounding the Monk and heals both HP and MP.  After the Wizards are taken out, focus on the Time Mage, then finish Miluda, and finally the remaining Knights.  A Priest or someone with White Magic will help out a lot with a quick cast of Protect on multiple party members at the beginning, so ensure that you set up your party in close proximity at the outset if you would like to use this buff. At this point, if you've been using Chemists frequently, you likely have at least one who has enough JP to learn Auto Potion. This is a skill that can save turns throughout the game, so getting it on multiple characters can be beneficial if you're not the type who likes to pay much attention to healing.

The variety of job classes in this battle, at this point in the chapter, can lead to some good chest or crystal farming.

You may want to consider returning to towns to get more equipment and items after this battle, as the next couple battles can get pretty difficult again. Units that can tank are beneficial for the next battle, and units that can tank and attack from range simultaneously are good for the one after that, so cover all bases.