As complex as the controls for Dungeon Magic can be, Combat is actually quite simple. You have two options: use your weapon or cast a spell.
In order to attack an enemy you must face it while standing on an adjacent grid space. Note that the same is true for enemies, they cannot attack you from afar. However, they can surround you and attack you from four different directions. While facing an enemy, if you wish to swing your weapon at it, you must have the Attack command highlighted, and press 
. Attacks are not instaneous, they take a fraction of a second to initiate before they strike the enemy. There is also a very short cooldown period before you can initiate your next attack.
Alternatively, if you wish to cast a spell, you must similarly be facing the enemy on an adjacent grid space, have the Magic command highlighted with a set of attack spell runes prepared, and press . Note that you can pause the game and take as long as you like to select the proper arrangement of runes. The action will not resume until you press 
again, so you are in no danger while the game is paused. It's important to remember that spells consume hit points, and the more powerful the spell is, the more hit points it consumes.
Enemies attack you in a similar fashion. They must be on an adjacent grid space (they will always face you automatically) and then can only attack so frequently. There are two types of monster attacks: physical and projectile. Physical attacks are followed by an enemy attack animation. Projectile attacks (including attack magic) are animated as approaching you and do not reach you until the animation is complete. In both cases, if there is nothing behind your character, you can simply take a step backward to avoid both physical and projectile attacks before they are completed.
As a result of these mechanics, there's a method of attack that you can attempt which could potentially minimize the amount of damage you sustain during combat.
- Stand two spaces away from the enemy, and press
to begin your attack. - Press
to approach the enemy before the attack lands, and strike the enemy with the attack. - Press
when it does to immediate retreat from the enemy and avoid any counter attacks.
For projectile enemies, you can remain in close proximity to the enemy, only backing up when you see the projectile animation start, and then rush back in to continue attacking. Note that enemies always choose to close the distance between you, so an enemy may advance towards you while you stand back from it.