Hey guys! I'm back and unable to sleep haha. But using this extra time I at least got the enemy and player behavior down to the point where I can start the real level building. I'm thinking the only attack is going to be jumping on the enemies like in Mario (sans fire flower). And as for health 1 shot, 1 kill for both player and enemy.
What I did was made 2 state machines. One for the player and one for every enemy in addition to what the corgi engine provides. The player's is based on the current position, if your new position is lower than the old position you are in attack state, everything else is considered vulnerable. For the enemy, it checks the state of the player it collides with and if it is in attack mode the enemy dies, otherwise the player restarts the level.