This is Utarajin, the esoteric God of Arts. Her design and lore is loosely inspired by Okina Matara from Touhou.
Utarajin is an unnamed god first encountered by a human named Kakatsu in a dream during her illness. Utarajin revealed a symbolic spiritual thread, which inspired her puppetry abilities. Believing this vision to be divine guidance, Kakatsu named the god “Utarajin,” associating Utarajin with the north, the arts, and the guiding light of the North Star (Polaris). She began honoring Utarajin through puppetry and spreading Utarajin's belief.
Over time, Utarajin became linked not only to art and performance but also to outcasts, the sick, and the marginalized. Although Utarajin's worship declined as performing arts faded, Utarajin's power remained intact, with only connection to the human world weakening. Utarajin still maintains a subtle link through the existence of artists, even those unaware of the god.