To tell you the truth, I can't even remember the last book I picked up. I rent alot of movies and half the time I don't even watch them. But for some reason now, this sounds familiar. Was there ever a kids version to this story?
I only ask since you mentioned that one part was very cruel and now I am thinking that I might have heard this story back in grade school. Maybe it was just a teacher telling us about the story with the golden touch and donkey ears.
But as you said, if I join another chat I will just get another nick. I'm not sure if others will look into it so deeply.