You're correct that this needs to be the time to think about your distortions and where you want to end up.
I would say:
Looks like you're sending Paladin down Negotation--that's probably a very good choice if you can do it. One of the few ways that regular-ass Forsaken can be useful in the lategame is if they give large bonuses to converted Forsaken and she has 3 quite good +victim ones.
Cheer can be trained for a damage type right now. She doesn't really have any of the modifiers that I look for, so if you've got a hole in your damage lineup she can fill it. I might go Tempted and build for EXPO damage if I needed that?
I've never really messed around with Demon Knights that aren't Undead. I generally feel like spending all my EE is bad. It's a shame that her self-breaks mean you can't make her a Negotiation Forsaken. She has self-buffs on TICK and you're adding 50% to that with Negotiation, she has a self-buff on trauma and Negotiated Forsaken can use Traumatize which multiplies Trauma. But yeah, bad pre-breaks make me sad. In my games I'd hit her with Aversion (though one on Aversion and one Tempted is admittedly difficult) and use her to buff the stronger Forsaken that I want to do HATE damage (I want a low-disgrace Forsaken that buffs each damage type so I can build strong Forsaken). If that's not something you can manage I'd probably just get all the T4 breaks on her and not worry about Distortions.
