This is one of the most imaginative works I've read in a long time. Whimsical, dark, frightening, hilarious... mash up a late Harry Potter book with The Phantom Tollbooth and Terry Pratchett's DiscWorld (w/ a dash of Patricia A McKillip). Did I mention it's set in a world where books and authors are venerated? Eh, just read it!
From the Publishers Weekly review, for those who like a little plot summary with their recommendations (edited to remove MASSIVE spoilers):
German author and cartoonist Moers returns to the mythical lost continent of Zamonia in his uproarious third fantasy adventure to be translated into English (after 2006's Rumo)... Optimus Yarnspinner, a young saurian novelist, embarks on a quest to track down the anonymous author of the most magnificent piece of writing in the whole of Zamonian literature.
Description from Goodreads.com: The author of 13 1⁄2 Lives of Captain Bluebear transports us to a magical world. Optimus Yarnspinner finds himself marooned in the subterranean world of Bookholm, the City of Dreaming Books, where reading can be dangerous, where ruthless Bookhunters fight to the death.