To start, here's a Froud-esque goblin I did aaaaaaaaaages ago with watercolors:

He's a little wonky...but that's how goblins do, right?
I have a 24 set palette of nice semi-wet Yarka St. Petersburg watercolors.
Yarka St. Petersburg Professional Watercolor Pan Sets - BLICK art materials I love them and they've lasted forever. That being said, they don't take well to cool tricks with salt...so I have to get a cheaper set for that. I also have some iridescence watercolors that I ordered online. I use them for illuminating manuscripts and for little faery pictures (and landscapes).