Couldn't Man Ray's work be considered a variation on magical realism? He certainly took everyday objects and infused them with mystery.
Also, a more modern link might be to the videographer Bill Viola. If you are not familiar with his work, you must check it out!!
Are you looking strictly for for photographers/ visual artists or writers?
If photography/ visual art, I assume you've started with Franz Roh? and, though he's more of a surrealist...Man Ray
also try: Shirin Neshat; Julien Pacaud
If you are willing to include other visual artists, you might also want to look at: Rob Gonzalves; Mati Klarwein;Ivan Albright;George Tooker; Lori Field; Richard Selesnick and Nicholas Kahn; Carrie Ann Baade (maybe too surreal)
Guillermo Del Toro (Pan's Labrynth)
Marquez, Isabel Allende, Alejando Carpentier, Yan Martel, Salman Rushdie, Laura Esquivel
Hope this helps
One way to approach this would be to focus on what photography as a medium means, rather then looking for photographers whose work is specifically similar to the magical realist genre.
For example, the images found on the site linked below, from South America in the years 1840-1920 could almost be seen as analogous to the characters in 100 Years of Solitude. While they were not created to be magic realist works of art, what is more magical then a photograph, especially in a world where the art form is new?
You could approach the idea, which I think is a great one, from the impact that photography had in general in South America, and how this "magic" art form ended up informing and perhaps inspiring another-- the magic realism genre.
The New York Times article linked below also has info on the introduction of photography to Latin America and the impact it had. Please let us know how your work goes.