Fantasy: Usually set in fictional universe (or at least part of the story is), it can include magic or other supernatural elements, and/or magic or magical creatures. It tends to include things that are fictional and question what would happen if they were real (i.e. what if fairies were real?)
Magical Realism: Is a sub-genre of fantasy, the magic or supernatural included is set in the real world and blends the fantasy elements with everyday life.
- https://www.goodreads.com/genres/magical-realism
- https://www.goodreads.com/list/show/143 ... ism_Novels
Do you have any recommendations that you'd like to share?