Steam Punk with magic. Very do-able. Iron Kingdoms, Children of the Sun, Victoriana, and a couple of others.
Might I suggest some history to make this work.
For a while, you have a fairly feudal/ medieval world. A few things should occur to shake you out of "the old way", and push you towards the new (motivation for your early industrial), Pick some of the following or throw all of them at the problem.
First, let there be a plague. A reduction in population has a threefold effect: 1) traditional skills are lost in some places (due to loss of skilled person), people scramble around to find a way to do those things... often in new and better ways, 2) People who have a vested interest in the 'the way things are' are lost and often replaced by people who have not yet become so staid in their views, 3) people are often thrown into new situations and ways of life because of the loss of support. This means migration of people from where they have always lived (village, city, etc). These people will bring their old ways with them, mixing them with the ones they find.
(If the disease hits the species in different way, it will disrupt the balance of power that had previously existed between them.)
Second: The reduction of population can lead to some experimentation with technology and magic, as people look for new ways to do things... to make up for the traditional performers of those skills. When things start working, people will adopt them. As the population grows people used to the technology/ new magics will swell in numbers (as kids who never saw the old ways and only know the new... so make sure the plague was a generation or two ago,, not last week.)
Third, and this could be done even if the first two are ignored, Some change occured, probably in the religion. It could be the existance of a new god or a new avatar (angels or what ever) that came down. The finding of old texts from a classic culture could prompt new (to them) learning and wisdom. Perhaps wise men from far away have come to the local shores, granting wisdom from the same faith from a different place. Logic and reason could be revitalizing this culture. (Another option... It coud be a lack of faith in the Gods if the plague happened. Given the first points, religion could change. )
Forth: I would have invaders from somewhere else come, during this mix. This will spur technology and new magics, provide new learning, and change the existing political landscape. The invaders could be partially beaten back, so there are 'free countries' the invader's countries (on the coast maybe), and buffer zones.
Fifth: There could be a migration away from the battle torn/ disease torn Old Lands. This could lead to other changes. Remember that these will be 'the bold' (or those led by the bold). They will be risk takers and gamblers...
This sets you up with technological acceleration with tradition not currently standing in your way, many dramatic elemes in the culture (built in conflicts old vs new, magic/ tech VS religion, nobility vs democracy, invaders vs locals, change vs the way things were, and so on).