Okay, since you're an elf, you can make use of the lyrium veins that are planted around there. These will completely restore your health and stamina when you activate them. (I was a Dwarf on my first trip though the Fade, and Dwarves are immune to lyrium, so I couldn't make use of that particular aid). But the shapeshifts are definitely your friends in the Fade. I like to travel in the Burning Man because that means I won't get unexpectedly burned by fire barriers or traps or anything (and it also has the two area-of-effect fire spells), but you'll find some areas or enemies call for the Golem or the Spirit instead --or both, as I find in the case of Ukthiel the Crusher.
And yes, there is always the option to switch difficulties. I was an archer on my 4th playthrough, so I had a pretty good handle on what to expect and didn't need to adjust the difficulty in order to get through the Fade, but if it had been my first playthrough I might have.
Good luck! The Fade isn't quite as bad as people make it out to be, and there are of course all those handy stat boosts. Make sure to collect them all!