Magical realism is a literary genre in which the world in which the story takes place, is realistic, with normal beings, places and objects. However, there is an undercurrent of magic or fantasy in which the line between the worlds in blended. For example, magical or supernatural phenomena exist in a setting that the author does not invent.
Fairy tales are a good example because the characters live in houses, eat food, wear the clothes of the times, but something happens, an invasion of that reality, that changes the overall story arc. Characters have traits such as levitation, telepathy or telekinesis that they employ to get what they want, influence people or outcomes, or entertain and bedazzle others.
Imagine flying carpets, bowls that dance and ghosts that haunt an occupied home.
Your task is to write a story that incorporates some degree of magical realism. Begin by choosing what type of magic exists in the world, whether or not it can be controlled, and who, if anyone, can manipulate the magic.
The story can be serious with potentially deadly outcomes or have a bit of humor when things/objects act in ways that do not occur in the real world.
Have fun with this one.