my personal favorite strategy for Kangaxx is to use the Protection from Magic scroll on HIM. not sure if it works in demilich form, but it keeps him from timestopping and killing everyone before he transforms. The instant he says "you have to kill me to release me" or whatever, i run upstairs and set up spell stuff. If you do it before his "you will be the first to die" dialog, he won't follow you. you can even rest and come back. then, anyone with a decent weapon and a protection from undead scroll can take him out.
As for the lich sleeping, he IS dead. Normally, liches you find out in the wild are only temporarily dead, because they keep their physical form separate from their soul. However, every lich you destroy in one of those coffin-rooms with the torches (soul phylacteries) is TRULY DEAD, because you have destroyed their soul as well. liches always appear with their soul in their body when inside their phylactery.
So Kangy will not be bothering you ever again.
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Yar!
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