Counter Stop Mura no Goinkyo Demon-san

After hearing there's a demon lurking in a village near the border, Albrea, the kingdom's strongest knight, sets out to slay the monster. When she arrives in town, however, she quickly discovers that all is not as it seems. It turns out the humble town of Montt has a lesser-known nickname—the Maxed-Out Village—and the mighty demon is a retired old man! Montt is also inhabited by a stew-loving demonic sword that likes to take the form of a young girl, a money-grubbing witch, and a drunken priest known as the Holy Fist... Just what are so many of the kingdom's greatest defenders doing in such a remote town? Through her encounter with the kindly old demon and the rest of the Maxed-Out Village, Albrea will learn what it truly means to be a knight!

(Source: J-Novel Club)