The Princess and the Goblins

 The Princess and the Goblin, by George McDonald, illustrated by Jessie Willcox Smith, (1920)

This is via a piece at My Daily Art Display about the illustrator. Check it out for more illustrations and to learn about the artist's life. I like this book a lot, but not nearly as much as my mother does. If you haven't read it, do give it a try. C.S. Lewis just loved George McDonald's writing and there's a good reason why.