This was a large picture book, made up of multiple stories. The main story and cover art featured a young blonde girl, she traveled with fairies, they would ride large bugs, like ladybugs. Also a story about gnomes, they had homes made of ice cream. I believe there was a mermaid/pearl story.
Are they the books by Shirley Barber. I had a large book with multiple stories about fairies and stuff and it was called Shirley Barber’s Fairy Collection.