Das Puppendorf
Illustrations for Das Puppendorf (The Village Dolls) by Hans Hoffmann (Germany, 1906)
The whole book can be viewed at the Braunschweig Digital Library.
I'm having a hard time finding information about the illustrator—seemingly every "Hoffmann" (or "Hoffman") born in the last 500 years was an artist or writer. The search, however, is enjoyable.
Update: I now think the author is likely schoolmaster turned novelist Hans Hoffmann (1848–1909). The illustrations are signed K.G. (???)
See the full "Kinderbuch series" of German, Austrian, and Swiss children's books
See the full "Kinderbuch series" of German, Austrian, and Swiss children's books