Talk:Demon Way, Kasumienran/@comment-33468092-20171126094148/@comment-26171533-20171126103229

The card reduces the the next source of damage to zero, be it an attack, and effect or a cost that states that you TAKE damage (PAYING life does not count towards this). then, directly after the spell is cast, your friend would gain one life. (not this happens after the spell is cast, not when the effect triggers). Now unlike a nullify, the effect to reduce damage to zero lingers on the field until the end of the turn, so even if you don't cast it in response to a damage source, the effect will still protect you for one time.

TL:DR: sorry for the ramble, but here's how it would apply for you and your friend. The second attack's damage would be reduced to zero, assuming it was being aimed at you friend, and then he would gain one life.