Kay Nielsen

Kay Nielsen is another Golden Age Illustrator who did gorgeous fairy tale illustrations in the first part of the 20th century.

I love his drawings for a lot of the same reasons that I like Dulac (content, colors, and Art Nouveau style), but Nielsen brings in a slightly more Asian aesthetic- he was apparently influenced by Japanese woodprints and Hiroshige.

Asifa-Hollywood archives has some great scans of a variety of his work
Twelve Dancing Princesses
East of the Sun West of the Moon
Hansel and Gretel

Edmund Dulac

I'm a huge fan of fairy tales and especially of the "Golden Age" of illustration, and Edmund Dulac is up there as one of my favorites.

I love the colors, lines, composition (love the simple way of blocking out fields of color) and subject matter (I'm a sucker for fairy tales). I really dig the influences of Pre-Raphealite techniques and Art Nouveau / Arts and Crafts design as well.

Images from Edmund Dulac Art Images (which include prints for sale)

Additional images can be found at Asifa-Hollywood animation archives