Imaging Atmospheric Cherenkov Telescopes (IACTs) currently in operation feature large mirrors and order of 1 ns time response to signals of a few photo-electrons produced by optical photons. This means that they are ideally suited for optical interferometry observations. Thanks to their sensitivity to visible wavelengths and long baselines optical intensity interferometry with IACTs allows reaching angular resolutions of tens to microarcseconds. We have installed a simple optical setup on top of the cameras of the two 17 m diameter Major Atmospheric Gamma-Ray Imaging Cherenkov (MAGIC) IACTs and observed coherent fluctuations in the photon intensity measured at the two telescopes for three different stars. The sensitivity is roughly 10 times better than that achieved in the 1970s with the Narrabri interferometer.