Well, generally the main series should be read in order: 'Magic Bites' is first. Then comes 'Magic Burns', which further develops the world and characters. 'Magic Strikes' continues the story. As for the short stories, some of them like 'An Ill-Advised Rescue' can be read between the main books. It really depends on your preference. You could also choose to read all the main novels first and then go through the short stories.
The Kate Daniels series reading order begins with 'Magic Bites'. This book sets up the post - apocalyptic world where magic and technology collide. After that, 'Magic Burns' deepens the plot and relationships. For short stories, there are quite a few. 'Magic Tests' is a short story that can be read after 'Magic Strikes' as it gives more insight into the characters' development. However, if you prefer to have a more complete view of the main plot first, you can hold off on the short stories until you've finished the main novels in sequence. Reading the short stories in the order of their release can also be a good option as they are often designed to complement the main series at different points in the overall story arc.
The reading order of the Kate Daniels series starts with 'Magic Bites', followed by 'Magic Burns', 'Magic Strikes', etc. For the short stories, they can be interspersed at relevant points. For example, 'A Questionable Client' can be read after 'Magic Bites' as it gives more backstory. But it's also okay to read them after finishing the main novels.