HELP....what movie is THIS...

I remembered this film from when I was a wee lad!


In a child's bedroom there is a little tiny closet where a creature lives (I do not remember what kind of creature...perhaps a gnome, elf, troll, goblin, hamster demon). Anyway, this creature comes out and has a little tiny knife that it stabs people with. And then at the end the creature gets its little cute hand chopped off by a fan in the bedroom. I also believe this movie involved a CAT.

THAT'S ALL I GOT.

WHAT MOVIE IS THIS?????????????

SALUTATIONS!!!!!!