I think that proceeding with Rushdie's use of magical realism will have to center on specific works. I think that you will have to find works that embody the use of magic realism in the best way throughout and use excerpts to help demonstrate what you plan on proving with regards to it. This brings another issue to light that might have to be examined. What do you plan on doing with Rushdie's use of magical realism? Are you planning on explaining how it is present in his novels? How magical realism is more of one than the other? How Rushdie's use of magical realism has sometimes moved to more realism than magical? Are you going to examine the role of satire in Rushdie's employment of the style? I think that being able to fully explicate what you are going to do with the idea of magical realism will help you out a great deal in this venture. In terms of required material, I am afraid that not knowing what is considered to be "required" is a challenge here. If you have certain requirements that have to be met, I think being able to discuss these with your instructor would be the first step. Obviously, the internet is a great resource for you. The enotes analysis of Rushdie features some excellent sources that might be able to assist you.