Is ketoconazole safe?

Hi. My 6 y/o Papillon has suffered fron skin problems his whole life. I've been told they are allergies. Hes had a few Prednisone shots over the years but they dont really help so I asked them to stop giving them to him . Hydroxyzine didnt help.Benadryl gives him some releif. He has always been on a flea preventative first frontline plus, but that doesnt seem to work anymore, so I switched all my dogs to comfortis, and of course a heartworm preventative.
Well recentely he started developing scabs on his back. where he couldnt really reach to scratch. I just happenened to notice one day when i was watching TV and running through his hair, Its long. Took him to the vet, they thought ringworm and said we could treat with lotrimin, over the counter stuff. After a couple weeks no improvement (I know it takes up to a month but you'd think there would have been some improvement), back to the vet.
This time a prescription shampoo used twice a week and ketoconazole 50 mg (they broke them up for us) once a day. She knew I wasnt crazy about putting him on an oral anti-fungal , the liver toxicity and all, so I understand this is a low dose. Ok thats the history. Now my question. Do you feel this is a safe drug? I havent started yet (got it yesturday and did shampoo him last night). And also he seems lethargis and has lost his appetite so I've been giving him boiled chicken and some low sodium beef stock mixed with water. But I found a raw diet on the internet and want your opinion on it.Do you think it would be safe for him, or any dog.
Thank you, sorry this is so long.
Sincerely Tina (diet follows)
■10 lbs. of raw ground beef
■18 hardboiled eggs including the shells-cooled (the egg shells supply digestible calcium to your dog. Yes, studies have proved that the calcium in egg shell is highly absorbable.)
■1 tube of Supromega omega 3 fatty acid Supplement (This supplies important omega 3 fatty acids. It also contains natural source vitamin E.)
■Dinovite daily dog supplement (This supplies a host of vitamins, minerals, digestive enzymes, zinc and live direct fed microbials. Dinovite also has a nutritious plant component in the “Alfalfa Nutrient Concentrate” that replicates the partially digested plant matter of herbivores. All great stuff!)I use 1 tablespoon of Dinovite per cup of dog food.

(Tina's Note)
This is all mixed together and served raw in appropriate serving sizes to the dog. the rest can be refrigerated or frozen.

Thank you so much. You have alleviated my fears somewhat about this medicine and I started him on it today.Crushed it up and added it to some wet dog food I bought for this purpose. The vet also put him on cephalexin for 10 day, and I started him on that yesturday and he already seems better. Drinking water on his own, more active, almost his old self. Now we just have to clear up his skin.

Besides yellowing of his eyes or gums, is there any other side effects I should watch for with the anti-fungal that is a 'trigger' to take him to the vet? SHe has already scheduled a blood test in 2 weeks to make sure his liver is doing ok. Yes they are my babies and sometimes I am a bit paranoid.

Anyways thanks for your reassurance, I'll take your advice and avoid the raw diet.

Congrats on the new addition to your family!!!! I have a 15 month old grandson living here and boy is he a handfull!!!!