You know, when I was playing her on this play through (a couple days before you mentioned her), I absolutely got my ass handed to me the first time. I remembered the deal with the bombs and blade from the first time I played, but got shitkicked on the ground. I went to bed after one try.
The next day, I booted up, ran into the fight, and beat her pretty much without taking a hit. I don't know what the fuck I was doing the first time, but the second I went very conservative. After she landed post-bomb, I'd dive in for a couple hits and dive out. During the ground battles I'd basically do the same: Dodge like a mofo, dive in when there was an opening, and I dominated in the "smash button" portion. I think being conservative is the trick because I was pretty suprised it was so easy the second time. She must just do massive amounts of damage and if you try to get a couple of extra hits in during an opening you probably just lose a ton of life as she flails.
I strongly suggest trying again, the game is totally worth it.
