The Three Questions by Jon Muth takes a Leo Tolstoy story and reworks it as a magical fable for children.
Another Jon Muth book is also good for this Principle: Zen Shorts
The Hermit and the Well is a story from Thich Nhat Hanh's childhood.
The Empty Pot and The Greatest Power, both by Demi, are stories of how children search for truth and are rewarded with positions of authority because of their search.
Picture Books for the 1st Principle
Picture Books for the 2nd Principle
Picture Books for the 3rd Principle