skygiants

There's Pamela Dean's The Dubious Hills. It's pastoral and has a cozy feeling and is largely about small domestic matters, though it's maybe too intellectual to quite fit. The premise is that all knowledge/understanding is split among individuals, so that only the person in charge of pain can feel pain or know when anyone else feels pain. And so forth.

Possibly inspired by that, Jo Walton's Lifelode. Also very domestic, with odd magic and polyamory.

Katherine Blake's The Interior Life. A housewife imagines adventures in fantasy land, which may or may not have an independent existence; they influence her life in positive ways. Absolutely lovely book.