The Alchemist by Paulo Coelho — Coelho is Brazil's most internationally famous author, and while this allegorical novel is set partly in the Sahara rather than Paraty, it was written during the years Coelho lived in the region. Reading it before visiting gives some context for Brazil's relationship with mysticism and adventure.
Dona Flor and Her Two Husbands by Jorge Amado — The great novel of Brazilian sensuality and food, set in Bahia rather than the Southeast, but capturing the spirit of colonial-era Brazilian life that Paraty's streets still echo. Amado writes about cachaça, seafood, and popular culture with the same affection you'll find in Paraty's bars and markets.
Brazil by Michael Palin — The comedian and writer's account of a journey through the country is affectionate, curious, and honest about Brazil's contradictions. His chapters on the Atlantic Coast capture the physical beauty of places like Paraty without ignoring the social complexities.