Cackle by Rachel Harrison is a marvelous mix of modernity and magic, inspiring us to believe the two can co-exist.
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As far as books about witches go, The Vine Witch is definitely one of my top five favorites. Smith has done a wonderful job of bringing to life the magic in the mundane.
Manifesting Spirits: An Anthropological Study of Mediumship and the Paranormal by Jack Hunter has gone where few have gone before.