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http://steamcommunity.com/sharedfiles/filedetails/?id=873311868
tl;dr Illusion, Destruction, Conjuration and Poisoned arrows. Melee is next to useless, and custom spells are the ♥♥♥♥. Final stats are at the end!
But as I said, it's not actually a challnge, it's just not fun, every enemy takes forever to kill, it's like playing boss fights all the time, but without getting loot.
I usually set difficulty +5 (150% from enemy) and Use VCE(Vanilla combat enhanced) plus MOO.
After finding this trick out I NEVER die
Join the Mages Guild, OR have the Frostcrag Spire DLC
Level Alteration up to 100 -> Make a shield 85% for 60 seconds spell (If you find yourself needing more mana, Oblivion gates after level 26 can drop sigil stones that enchant equipment with +50 magicka), 85% is the maximum shield you can get, anything higher is a waste of magicka as it hard caps. Then, around level 15-20 I believe you start getting a random chance for enemies to drop Mundane Rings which give 50% magic resistance, if you're the Breton race you only need 1 to boost yourself to 100% magic resistance, 2 if you're a non-breton. Then to top it off make yourself any good restoration spell, as you won't take any magic damage but can still take physical damage with the game's cap.
That's unfortunately Oblivion sometimes. There are some enemies with HP that is proportionate to the character's level [e.g. Goblins, Ogres, Xivilai] that are tedious to deal with at pretty much any difficulty. On High Difficulty this is exacerbated, and yeah I can imagine you're finding it tedious if you're just dancing around waiting for your Summon to do all the work.
Weakness to Magicka stacked + Destruction spells are the easiest way to make fights quicker. You could argue that this removes a lot of the challenge, but again this isnt exclusive to Oblivion. Morrowind and Skyrim similarly end in having an all-powerful character at high levels, where I suppose one could argue it makes it easier to explore everything. More info here: http://en.uesp.net/wiki/Oblivion:Spell_Making#Spell_Stacking
Aside from this: Illusion supports Conjuration very well [Paralysis or Calm lock + Summon melee is hilarious] and if the caster has enough magicka, you can even create your own small army for a short period of time [Command Creature], or remove just about all the challenge from the game with 100% Chameleon. Alchemy is great for making custom poisons that do a ton of damage [and ignore the difficulty slider], but they take a while to produce so they're more for special occasions.
If you would like to make the game less tedious: There are millions of mods for Oblivion, and one of the more popular ones gets rid of the ridiculous levelled health bars . I'm not a mod fan myself, but if you're after less tedium I'd start there.
As I said, I'm not dying, as long as I don't get too bored... I only die when I start using Magicka on useless Destruction spells...
Of course the leveling system is supposed to be learning by doing, but it just takes forever to train some skills if you don't have the money for a trainer..
I like your profile pic btw. FOR THE EMPEROR!
I'll try playing on something like 55-60%
Somehow the leveled list of TES bugs me out sometimes too.. at some point, the world just seems full of Ether Lich, Deadroths, Xivilai and Storm Antronach.. can't there be any bandits without friggin Glass armor? Same thing in Skyrim though..