As a water mc I ended up using a MC -> Kakashi -> Tayuya ->Kabuto team. Honestly if you have area of effect attack ninja or high chase teams you "can" beat him, might take a few tries.

Tayu was only helpful in sleeping his puppets instead of breaking them, if you can avoid taking his puppets or him down till their hp is a sliver you can AOE atk him and win. If you do take a puppet down he will make a new full hp one just to prolong this sadistic mission.
Sleep does not work on him.