Ida Outhwaite, an Australian whose work flourished during the Golden Age of Illustration, is well remembered for her work with fae and children. Her images managed to capture the sense of childhood and fae without being too sweet. And her color palette was rich and pleasing to the eye. I'm surprised she isn't more well known, even though much of her work is nearly 100 years old.
You can read more about here here: http://bit.ly/1R96kfk
Her work is also plentiful on Pinterest.