Princess and the Goblin by George MacDonald

There was once a little princess whose father was king over a great country full of mountains and valleys. His palace was built upon one of the mountains, and was very grand and beautiful. The princess, whose name was Irene, was born there, but she was sent soon after her birth, because her mother was not very strong, to be brought up by country people in a large house, half castle, half farmhouse, on the side of another mountain, about half-way between its base and its peak.