I had a collection of fairytales in 1990-1995, though it may have been published prior to that (c. 1980-90).  It had a royal/dark blue cloth cover with a small, embossed-gold pegasus in the center of the cover (possibly with children riding the pegasus).

The collection was rather thick (perhaps a half inch) and contained at least 20 stories.  Each story was illustrated with at least one color illustration on each page (some small alongside the text and some full page). There were different illustrators throughout.  The text was regular-sized font.

I specifically remember these stories, though there were more (I’ve listed the more rare first):

• The Twelve Dancing Princesses (I specifically remember the exquisite illustrations of the prince breaking off a branch of the silver tree)
• The Snow Queen (illustrations of Kay and Gerta with the penny on the window, the snow queen in her carriage driving away, the garden of flowers Gerta visits, and her red shoes)
• The Water Babies
• The Little Match Girl
• Cinderella
• Rapunzel (an incredible full-page illustration of the witch’s garden)
• The Sleeping Beauty (illustrations of thickets of thorns, sleeping kitchen maids)
• Rumpelstiltskin
• The Frog Prince
• Hansel and Gretel
• Jack and the Beanstalk
• There may have been some Aesop’s fables as well, but there my memory gets hazy.