Troops - what when where? - from Dr.Aborg

Archers: Tower only
Braverhearts: Defense only
Paladins: Offense / defense against Infantry
Raiders: Offense / defense vs calvary attacks
Honored Knights: Used for Both

To figure it all out you have to crunch the numbers - here is the summary of the numbers:
Attack/Def-Inf/Def-Cav/Wage
Arc: 30/50/30/.2
BH: 35/25/45/.2
Pal: 55/30/25/.2
Raid: 110/60/80/.6
HK: 170/120/100/1
Thus given 1000 wage you would get 5000 BH, 5000 Pal, 1666 Raid. 1000 HK In Attack strength (NumbersXAttack) that equates to:
Arch: 150.000
BH: 175.000
Pal: 275.000
Rai: 183.260
HK: 170.000
Thus, the most powerful unit is the Pal in terms of strength:Wage ratio. The disadvantage is the total time it takes to make 1000 HKs vs 5000 Pals!
Defensively: (vs_inf/vs_Cal)
Arch: 250.000/150.000
BH: 125.000/225.000
Pal: 150.000/125.000
Raid: 99.960/133.280
HKs: 120.000/100.000
Considering that most attacks are based around calvary, the BHs are the best defense in terms of cost.
So to wrap all this up: HKs are excellent for short term army development. I would say your first two or three castles should have a majority of HKs as they quickly give strength - but long term development should include Bravehearts for defense and Paladins for offense. Another factor to consider though is speed - for that reason I recommend a plundering force of about 200 Raiders so that you can safely hit all the castles <100 construction points for resources! Finally, utilize the battle simulator and run the numbers to figure out what is the best combination of military for you!