It was maybe in 2000-2012.
It was a fantasy book. I believe it combined a LOT of other fantasy works into one big story with a lot of popular characters from books and fairy tales and things. I'm pretty sure every chapter started with "In which" so and so happened. Example- In which there was a dragon. In which the princess met a new friend. etc. I'm pretty sure the main character is a Princess. And there was likely a character, possibly a prince, named Touchstone.