Etheria

From King's Quest Omnipedia

Etheria also known as the Faerieland is a heavenly realm above Eldritch, the capital of that land, and is the home of fairies, ruled by Titania and Oberon. Etheria is a land set upon the clouds, and some of the deities and powers of the world of Daventry continent reside in Etheria, along with other mystical and magical people and beings.

Etheria is a land of clouds, rainbows, beauty and sweet song, and one of its greatest places is its amazing city of the same name. Time moves faster in Etheria than it does in Daventry.

in KQVII Valanice traveled there to garner help for saving Eldritch from the exploding volcano.