Honestly, I get why the 'magic next door' thing is popular, but a lot of it feels too neat. The powers are just there to spice up a normal life. The books that stick with me are the ones where the magic feels like a fundamental, messy violation of reality's rules.
Something like 'The Library at Mount Char'. It’s technically our world, but the magic is so utterly bizarre and cosmic it rewrites physics and psychology. It’s not a system; it’s an affliction. The real world setting just makes the horror of it more tangible, because you recognize the street corners and suburbs it's tearing apart.
Another one is 'The City We Became' by N.K. Jemisin. The magic is the city—its soul, its conflicts, its very real racial and social tensions personified. The power doesn’t exist alongside the setting; it's a direct, chaotic manifestation of it. That integration feels more authentic to me than a secret wizard society operating under a polite veil.