Grounding Fantasy in Reality

One of the tricky issues in writing urban fantasy is finding the appropriate balance between fantasy and reality. Urban fantasy, by definition, includes fantastical elements (including paranormal ideas or magic) in a mundane setting. Fantastic elements make a story interesting, and realistic elements make a story believable. Too much fantasy makes the magic less special, drowns it in a sea of fantastic characters and places. Too much realism makes the world too gritty or dull. But how much...