The Hitchhiker's Guide to the Galaxy has elements of daft fiction. With its crazy space adventures, absurd alien species like the vogons with their terrible poetry, and the completely unexpected twists and turns in the story, it fits the bill. Also, some of the works by Terry Pratchett, especially in his Discworld series, where you have a flat world on the backs of four elephants on a giant turtle flying through space. The characters and situations are often daft and humorous, which is characteristic of what might be considered daft fiction.
I'm not aware of any well - known works specifically titled 'daft fiction'. But works like 'Alice in Wonderland' could be considered somewhat in the vein of daft fiction. It has all those strange creatures and illogical happenings.