Kelly Link

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She's written a couple of collections worth of short stories so far, mostly fantasy type stuff like ghost stories and people living inside handbags and children with telekinesis and whatnot.

Here's a link to the entire text of her first collection.

I reccomend hitting ctrl+f and checking out Most of My Friends Are Two-Thirds Water and Vanishing act. Or maybe getting Barnes and Noble to order a copy of her second collection.