Cant remember a book from my childhood?

When I was younger I read a book about three times, and it wasn't a famous book or anything, but I'm dying to find it and I cant remember the name or author.
I remember that it centered around a princess, and a set of cast members within the story, and it sort of had the premise that they acknowledged that they were story characters and that when they were read they had to "get in place" and act out the scene. And they could look up at the reader. And then there was this part in the middle where I think the book caught on fire and so the princess (and I think a romantic interest, I cant remember) ended up in the readers dreams? The rest I cant remember.
But I think that it had a pastel-ish pink cover with a picture of a princess running through the woods?

If anyone knows what book this is, or if you've read it too or even still have it, please let me know.
Asked May 16, 2017
Edited May 16, 2017

TIP: If it's not your answer to this question, please click "Leave a Comment" button under the question to communicate with the question owner.