Dear Pete:
There have been several replies, but it's not clear that they are getting back to you. Have you signed onto the list?
At any rate, as several people have said, much depends on what you mean by magic -- and, I would add, psychotherapy. The latter is important, since an earlier, and very relevant, meaning of "psychotherapy" was something like "mind cure", and that sense of the term opens the door to a vast overlap between the history of psychotherapy in the current sense (therapy of the mind) and the history of New Thought, Christian Science, mesmerism, and so on. There is also quite an overlap between "magic" and psychotherapy not only in intellectual history but in the history of practices and practitioners, some of whom in fact had careers, so to speak, on both sides.
One of the classical embodiments of this overlap was Violet Mary (Firth) Evans, who, as Dion Fortune, wrote as a practicing magician, and as Violet Firth worked at an early psychotherapeutic clinic in London, the Medico-Psychological Clinic -- the founding of which marked by a controversy with one of its patrons, who was given to faith healing, and whose assumption that the Clinic would be a faith-healing center was disputed by other founding figures.
Another figure of interest is Roberto Assagioli, founder of Psychosynthesis, and also a participant in the early Eranos conferences, while they were still more oriented toward the occult side of things. He also worked with Alice A. Bailey.
You might also want to look at Henry Murray and Christiana Morgan, devisers of the Thematic Apperception Test; at least one of their biographers claims that they performed "ritual magic" in their rustic tower retreat.
I should also mention "Dr. Elizabeth Severn", who started her healing career as a practitioner of mind cures, and who finished up as a psychoanalyst (whose training analysis with Sandor Ferenczi was remarkable in several ways). You might also wish to consider Nandor Fodor, a psychoanalyst and psychical researcher, one of whose analysands was Israel Regardie (already mentioned in other responses to your query).
In a more general sense, you may find it worthwhile to look at Ellenberger's Discovery of the Unconscious.
The relationship between magic and (especially academic) psychotherapy is a little like that between gambling and the confluence of probability and game theory -- the former rolls up its sleeves, lights a cigar, and pours out the whisky, while the latter pretends to an academic cool that would keep butter from melting in its mouth. But, off-stage, there's an ongoing conversation.
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