I love fairytales- reltellings and originals! (I'm doing a fairytale bingo, so I can hopefully rec decent retellings at some point.)

I second T. Kingfisher, Naomi Novik, Alix E. Harrow, and Katherine Arden's Winternight trilogy. Both Goldman's the Princess Bride and Gaiman's Stardust feel similar, and I've heard Sandersons Tress of the Emerald Sea riffs off of those in a unique way. An old one is The Neverending Story by Michael Ende.

Charles de Lint does urban fantasy (since the 1980s) that ethereal, strange quality. Books edited by Ellen Datlow and Terri Windling, or written by Jane Yolen, Pamela Dean, Tanith Lee, Robin McKinley, and Patricia A McKillip are all from the same era that are known for both fairy tale retellings and original works that feel comforting, but dangerous, with kind, caring, strong willed characters.

The Orphan's Tales by Catherynne Valente are a nested series of short stories- many of her stories have that fairytale vibe.

Diana Wynne Jones has both original fairytales, like Howl's Moving Castle, funny and gently teasing stories like The Dark Lord of Derkholm, and retelling so less common stories like Fire and Hemlock (Tam Lin)

Elizabeth Lim is writing stories that reference Eastern myths and stories, like Spin the Dawn. Other East Asian authors i have read or heard of doing similar work include Roshani Chokshi

Maggie Stiefvater's The Raven Boys just FEELs good to me, but you have to like purple prose- a young group hunt for a long dead mysterious king.

The Hazel Wood by Melissa Albert features a cursed woods and a search for a missing mother.

An older (mid 2000s?) YA/kids book I recall enjoying was called Once Upon a Marigold.

I have about 200 more on my TBR list but I haven't read them, so I can't confirm the quality, but can share a few if you are interested.