Actually, as far as I can tell, you need to fight the Guardian Knights four times in a row (no resting), twice on your turn, twice on theirs. I'm not certain if the time you do this matters, but if not, you could try Crusade in the evening, then use Bloody Claw at night (only when the leader is left, if you want to win. If not, anytime will do. This is necessary since the last unit, leader or otherwise, will be invincible) : This gives you a chance of beating them, and will at least greatly reduce morale damage. If this doesn't work, then any two cards during noon and evening will do the trick: it did for me. (I doubt if you have to steal all their items, but that was what I did just before the story continued) (Note: 1 on 1=Win items don't work against them, it seems.)
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