I ran session two of Death House tuesday. They were in the basement. I have to admit I held back a bit with the Ghouls (tactically0), and again with the Ghasts (lowered hp) The Shadows made the party fully run away, which hasn't happened in a long time. They are scared to go back to the Darklord's room. They found the crypts and put the childrens' souls to rest. One of the souls was possessing a character, so that was a good roleplaying moment.
So, I shied away from killing any characters, but the players are certainly running scared. They are resting up, leveled to 3rd and about to descend to the sub basement. I've provided them with the "Fingerbone of St. Andral", which I will allow to be used as a sacrifice on the altar. We shall see how that goes.
Party is a barbarian, Wizard, Fighter(MonsterHunter), and a Thief (Arcane Trickster). No cleric is pretty tough.