You do need to play this with the German balance (which requires you to take one less building). This helps the situation, but it's still hard.
However, I recently played this as the Germans (using the balance) and it came down to the wire with CCs (I did lose).
The keys to the German victory:
-Be very aggressive as you move through the woods. Take all your shots in the Adv. Fire phase. Remember that your 548s gets assault fire. Push up adjacent to the Russian line in every turn. Your morale is good. Even under DM, in the woods you can rally on a 6, with a leader. What you need to do is kill Russians. Breaking them is OK, but they're all going rally after they run back to the commissar. In fact, both sides will rally the majority of their troops. For that reason, this is a real grudge match.
- Use the DCs to destroy Russian squads in the woods and cut a hole in their line. I wouldn't save them until the village, because he'll get -2 shots, with point blank fire as you try to place a DC in a building. The odds of placing one go way down.
-If you can, sneak a half squad behind the Russian line in the woods to try to cause failure to rout. He can't cover the entire width of the woods.
-Try to figure out very quickly where his dummies are. Count counters, or bump and expose. This will save you valuable time.
-Move squads along the bottom edge of the woods, so you can take pot shots at any units he has set up behind the hedge line. Important to try to break these guys.
-Place one or two squads in the building, and when he abandons the hedge line, rush it with these two squads to put pressure on his defense of these closest buildings. He has only so many squads, and they can't be everywhere.
-When you get to the edge of the village, deploy. You will need to sacrifice some HSs in your final assault.
-Your assault engineers have an increased smoke exponent of 4. Use it! But try to use it at the end of your movement, so you don't risk having your movement cut short with a 6.
-Don't rely on the flamethrower. It will crap out quickly.
-You might try sending a HS to take the upper most building. You may not get it, but it'll force the Russians to use a squad up there, draining valuable FP from the central village.
-Beware in the endgame of the commissar toting the DC.
Additionally, I would not recommend putting your 9-2 with the MMG in the building's upper level. Keep him in the woods, where he can blast Russians at point blank. You're only getting 4FP with the MMG, anyway, and it's not likely to do a lot of damage. Put it in the building with the HS, and leave it at that.
I did pretty much everything listed here, and got to the edge of the village with just 1.5 squads killed, and came close to winning. I lost mostly because my 9-2 and a squad were taken out by a snake-eyes shot, and my opponent got very lucky in the first CC, when a single leader was able to damage me under 6-1 and 4-1 odds.
It's a fun scenario---a slog through the woods followed by an intense rush of the buildings.
