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Daniel K. answered 09/22/20
Tutor and Study Coach

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Hello! This is a great question.
Background: The dictionary answer might lead you astray here because of other uses of the root Zauber (Magic). Zauber works kind of like the English word charm. While a charmed hat may be able to sort people into houses, a charming scene is magical only in a metaphorical sense.
In much the same way, Zauberhaft, which initially seems like a good fit, is better used to describe something metaphorically magical (think dew-flecked fronds of moss in the woods, an ivy-cloaked castle, or a sunset in the Black Forest.) Zauberish, which crops up in concert programs and art reviews from time to time, is much the same way - it kind of means "enchanting."
Bottom Line: If you want to describe Gandalf, however, you're better off with either Zauber- or Magish- as adjectives with the appropriate ending or Zauberei(f)/Hexerei(f) as a noun. If you want some poetic flair, you could try Zauberkraft(f) (magic power) or Hexenkunst(f) (literally "witches art.")
Examples:
Examples: Adjectival Usage
Gandalf ist ein magisches Wesen.
Gandalf is a magical being.
Der Sortierhut ist ein zauberer Hut. (Note: Lower case zauberer is an adjective but Zauberer is a masculine wizard)
The sorting hat is a magical hat.
Examples: Nouns
Gandalf ist zu Zauberei fähig.
Gandalf is capable of wizardry.
Halloween ist voller Hexerei.
Halloween is full of witchcraft.
Examples: Metaphorical Magic
Das Konzert was Zauberhaft! Debussys Sonate war echt Zauberisch. Es passt ganz gut mit dem malerischen Konzertsaal in diesem märchenhaften Dorf.
The concert was magical! Debussy's sonata was really enchanting. It works so well with the picturesque concert hall in this fairy-tale village.