This turned out to be a lovely story, and it made me smile all the time while reading it. I love that for once Arthur doesn't freak out when he learns that Merlin is a sorcerer. I also love the portrayal of Merlin and the chatty fairies.
That's a real feel-good story, and I hope it'll get many readers.

(Just one little act of nitpicking: when Merlin talks to Maleficient-the-Dragon, it looks like German at first sight, but it isn't. I suspect you used some internet translation service? Actually, in German he would say, "Maleficient! Lass das, und gehorch meinem Befehl!")