Penny Dora and the Wishing Box by Michael Stock

Once upon a time (on the day before Christmas) a young girl named Penny Dora found a mysterious box on her front doorstep ― a magic box with the power to grant wishes! Which sounded great...until Penny Dora found herself face-to-face with a horde of fire-breathing dragons, oodles of monsters, and at least seven dwarves...all thanks to the girl she used to call best friend, now known as Princess Elizabeth.