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Gene Wolfe (Book of the New Sun) is great and a common recommendation along these lines.

Ishiguro's The Buried Giant from last year asks to be described as Literary Fiction with a fantasy setting.

But chasing down "If you liked Gene Wolfe you might like.." recommendations online would probably be fruitful.

I loved "Remains of the Day" and "Never Let Me Go", but didn't finish "The Buried Giant." The first two aren't fantasy, but IMHO they're much better Ishiguro.

As for "literature-y" fantasy, I'd agree with others here to look at magical realism, e.g. "One Hundred Years of Solitude." But my opinion is probably crap -- some of my fantasy favorites are Tolkien's "Silmarillion" and "Lost Tales," which probably don't qualify as "great literature," but show some amazingly thorough and vivid world-building.

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