GOOD FIGHT!! I would favor Azula because she isn't going to come out fighting hand to hand in the beginning so either should learn Shiva's capabilities and be prepared for her when that time comes, or she increases her fire/lighting out put. Azula was keeping up with Aang and that kids very light on his feet.
Azula takes this after a hard fought battle. Lady Shiva just couldn't handle Azula's speed and fire power!!
But rather than kill her, Azula convinces Lady Shiva that they should work together. Together, they kill the Bat family, most of DC's street levelers and take over Gotham.
@jumpstart55: I've only watched a few episodes of Avatar, how good are Azulas reaction times and speed? As it is Shiva has ton more skill and experience, I'm just curious how fast Azula is given Shiva's vast knowledge of one hit kills, and nerve strikes and such.
@HolySerpent: Her reaction time lets her dodge bullets, it's basically can Shiva get close as she only needs one blow. I believe she's capable of closing the distance for a win, she might not be a noob she's far inferior then Shiva in actual skill it seems she mostly utilizes her firebending.
@nightwing91: Azula has excellent agility and reaction time, she was able to dodge several hits from Suki and the Kyoshi Warriors in "Appa's Lost Days" and dodged all Aang's and Toph's attacks while powerless in "The Day of Black Sun". She can also use her firebending to increase her speed.
Azula is one of the most powerful firebenders in LOA (and the most genial villain in my opinion too). She is very tactical, can blast powerful AoE fire attacks and can use lightning, that I'm sure is far faster than bullets. She is skilled anough to keep a safe distance from Lady Shiva. Here one of Azula's fights, although her firebender was stronger due to the Sozin's Comet:
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