I summon 2 Dremora Lords to melee on it's body while I use my enchanted dwarven crossbow from a distance. The Lurker always seems to kill one of the Dremora straight away, but the follow up is usually enough to kill the Lurker. They are one big, badass enemy to be sure! I have been killed many times by one and I play on novice.
They are tough as all get out, but I must admit that I've had to spam potions against them alot when they get close. It's the fact that they sometimes spawn close to you that really makes one's day not so awesome. Other than that, the acid spit and tentacle stuff is mostly dodgeable at least.
I couldn't agree more with you.
I swear their melee is overpowered and crazy in how hard it hits. Though for an evil fish-frog of doom and gloom, it's pretty fitting.