The two books illustrated by Kay Nielsen are:

The Twelve Dancing Princesses and Other Tales for Children retold by SIR ARTHUR QUILLER-COUCH
East of the Sun and West of the Moon: Old Tales from the North

Here are two books illustrated by Maxfield Parrish:

The Arabian Nights, edited by KATE DOUGLAS WIGGIN and NORA A. SMITH
Poems of Childhood, by EUGENE FIELD

Some other books with especially fine illustrations in colour are:

A Child’s Garden of Verses, by ROBERT LOUIS STEVENSON, illustrated by Jessie Willcox Smith

The Wind in the Willows, by KENNETH GRAHAME, illustrated by Nancy Barnhart

LOUIS DODGE’S The Sandman’s Forest and his The Sandman’s Mountain, both illustrated by Paul Bransom

MARY MAPES DODGE’S Hans Brinker, or, The Silver Skates, illustrated by George Wharton Edwards

FRANCES HODGSON BURNETT’S Little Lord Fauntleroy, with illustrations by Reginald B. Birch