I read this story in an illustrated short-story collection in the late 90s or early 2000s. Unfortunately I don't remember the name of the book. It was about a yellow monster named "El Eano" (the spelling isn't exactly right but it was phonetically similar).
El Eano is a yellow colored monster who secretly hides in an old woman's path. The old woman is short-sighted and mistakes him for a baby and takes him home where he demands food and starts messing up her home. He gets bossier and bossier and keeps asking for more and more food until the other villagers near her have to bring over food to keep him fed. At some point the villagers realize he's a monster and not a baby and trick him into eating hot coals disguised as potatoes. He drinks water soon after eating the coals, causing him to explode as the water turns to steam inside him.
The name of the story would be appreciated, and the name of the collection of short stories would be even better. If it helps, another short story in that collection was "The Fool of the World and the Flying Ship".