I've tried googling what I do remember, but unfortunately have not come up with the answer. So here goes...
1. Children's book.
2. A lady has a pet dragon.
3. The lady wears colorful clothing (i.e. dresses)... or did she have colorful purses? No, I think it was dresses.
4. This book was published pre-1992, possibly in the '70s or '80s.
5. Had colorful pictures.
That's it... sad isn't it?