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One of the long term projects of the Old Ones is breeding an race of half human, half demon slaves, one that can operate in places the Old Ones have been exiled from. If you are a witch, and you have pledged fealty to the Black forces, then creating a hybrid is the best demontration of loyalty. For demon species unable to interbreed with humans, you have to go the Shadow men route, take the essence of the demon, bind it to a human, and create a new race of half-man. Or at least that's my guess?