Aestolia said:
I was actually looking at this last night as well.
In terms of new or created monsters, MMI outright says
"yeah... um... find a monster that's about as powerful as yours... use that CR... that should work."
Exactly. Compare your generated monster to others in the MM as a baseline.
I run an extensive campaign with many many NPC's and advanced monsters (perforce, I made the mistake of taking a published adventure below my party level and then "just fixing" all the CR's... oh boy...).
So with all that experience with NPCs, the only thing that works well is comparison to the MM.
Specifically: I recommend against comparing them to an NPC of that level. Just like the monster guidelines are rough, the NPC guidelines are too. Two NPC's of the same level definitely don't always have the same CR, and generally, the real challenge is usually lower than the guideline would suggest (IMHO). Further, a 5th level fighter is an extremely variable being due to equipment choice, feat choice etc. In general, (N)PC's tend to have more AC, fewer dramatic, permanent special abilities (like regeneration), fewer hitpoints, and higher saves - and that makes apples to apples comparisons needlessly difficult. Just take a similar monster from the MM and look at that. In case of an advanced dire wolf, take a look at the dire lion. Indeed it looks a little weaker than a 12HD Dire Wolf, although it does have pounce, which is a very useful ability. In general, when mechanically advancing by HD, that's a recurring pattern; the result will have too much hitpoints and base attack, but too few special abilities of too low a level. And as any druid summoner can tell you, a dire wolf is pretty strong already, so it comes as no surprised that advanced versions are tough. If you compare if to an Umber Hulk Zombie (107hp, AC 19, +14 attack bonus, DR and undead immunities), then it's not looking as bad. You could make it CR 6 without too much problem.
Given the way CR's add up, a given challenge rating should be about as powerful as a real PC - with all bonuses due to min-maxing, high wealth, and everything - of that level, and NOT as strong as an NPC (otherwise, the higher level you become, the easier the game gets, whereas often the opposite is the case using MM monsters!).
In short, compare to monsters, not NPCs.