With the loss of surprise as her usual and generally most effective tactic, her intention now with the puppet is to maintain a hold on either Ch'dau or Kithran for long enough to bind them by spell and thread (think hold person, but as a maintained touch to establish it and with threads rather than a mental paralysis effect), but with the appearance of Ch'dau she's switched target to primarily be aware of him. The single puppet is at a disadvantage with both Ch'dau and Kithran on the offensive. That said, somehow she still keeps track of Kithran's movements while inside of the apothecary.
Of course, the crux of this encounter is how she's able to keep track of Kithran, preventing her from striking precise enough to cut the strings that keep the puppet animated... like one of those dolls with strings inside the limbs for controlling them.
Alternatively, if her puppet is knocked back long enough for Kithran and Ch'dau to retreat from the apothecary, she does not pursue.
As you can also tell, she also tries to unnerve them enough to make some manner of mistake. Given she's not actually in the battle herself, she has the luxury of not being in danger while she tries to psych out the two of them.
Let me know if you need a specific response from her; otherwise, this should not actually take that long to wrap up, as far as encounters go. It's a retreat or incapacitate type encounter - Morgana cannot be killed here, but her puppets can certainly be made to stop moving, if temporarily.