You're looking for the urban fantasy genre. There's scads of it.

I remember an ancient short story where the world finds out magic is real when the fbi breaks in on a bunch of atomic scientists speaking a weird language over a nuke. The feds try them as russian spies so they admit that science doesn't really work, it was magic all along, and they were chanting the "nuclear bomb" spell in enochian. Then, before anyone can freak out about it, a wizard uses mind control to win the presidential election fair and square and everyone shrugs and goes on with their lives.

Check out China Mieville's Bas Leg cycle, starting with Perdido Street Station. Read all the cws, first. It is horror. But China's a comrade and the world he creates features class conflict, imperialism, and other bad things in a way that makes it much more vivid and frightening than a lot of dorky bright-eyed steampunk stories.