TarkanDragon I would say the older girl looked a bit like Megan's style but she was not blonde, either brunette dark brown hair or black hair. The baby, imagine a well drawn baby, not very "cartoony", he looked and moved more "humanlike"
I really don't remember any of the other magical creature characters, there WERE villains though they were hiding from, and one scene I vaguely have in mind was that the youngest child making sounds, talking baby talk was going to make them found out from hiding somewhere.
It was really different in animation style than the Dr Doolittle anime. Both animation styles I love but different, so I am pretty sure it was not an anime the one I am looking for, unless there was work done for it in Japan like in MLP if I am not wrong.