If you like erotic novels that make you think, I can't recommend MeiLin Miranda's
Lovers and Beloveds highly enough. It's available as a Kindle e-book or paperback from Amazon or her own site
meilinmiranda.com, where she is also currently serializing the novel for free. (Erotic content: several scenes throughout the book - rape, some bondage, some consensual male homosexuality, some plain heterosexual love making)
The first three books in Jacqueline Carey's
Kushiel series (Dart, Chosen, Avatar) contain a fair amount of sex. No fairies or dragons, but some magic here. The books are a bit slow to build up and the narrator can be a bit irritating at times, but I love the world building and the stories. (Erotic content: quite a few scenes throughout the books - running strongly towards all things kinky, and sometimes heavily so, as the protagonist is a true masochist, experiencing pain as pleasure)
Anne Rice's
Sleeping Beauty books (The Claiming of Sleeping Beauty, Beauty's Punishment, Beauty's Release) are set in a fairy tale universe, but there isn't a lot of magic, elves or dragons about them. Plus, I find them really poorly written, so I can't really recommend them although a lot of people seem to like them. (Erotic content: lots - mostly bondage, spanking, humiliation, dominance and submission etc.)
If you don't mind reading online, Mack the Knife's
Feldare stories are full of elves, magic and sex. I find them solidly written, with well-rounded characters and stories. (Erotic content: lots - some of it rape IIRC).
For science fiction, I recommend Elf Sternberg's
Pendor universe. It's more a huge collection of interconnected short stories than a bunch of novels, though. It starts out kinda magic-y, but soon becomes solidly SF (ring worlds, space travel, aliens and AI-controlled robots all come into play). (Erotic content: lots - almost all of it either kinda furry or bestial, as it involves a universe of intelligent, anthropomorphic beings, many of them modelled on cats, dogs, mice or even lizards, some robots, some BDSM, quite a bit of male homosexuality).