The magic in Magical Realism can’t be separated from reality. It isn’t an add-on, or an inclusion. It isn’t that “this is reality and this is magic”, it’s that this is reality, and so is this. This is the way the world works, but so is this. The more you are wedded to one version of reality, the less you will appreciate Magical Realism. The more you are willing to acknowledge our inability to define the boundaries of reality, the more you will appreciate it. The same is true of literary fiction in general.