I have Hans Christian Andersen The Complete Tales and Stories translated from the Danish by Erik Christian Haugaard.
It’s supposed to be a very very close translation. For example: Thumbelina is actually Inchelina. The translator defends this decision in the forward. This edition does not include illustrations.
This is definitely not the watered down version! It may be too graphic or intense for a sensitive child. I censor less than most of my friends for our 7 and 5 year old, but I am holding off on some of these stories for now.
Hope that helps!