Injuries plague Madrid as Carlo Ancelotti's men face daunting task in remaining games.
Modric and Bale out, Ronaldo missed penalty and James scored a stunner.
Real Madrid played a game that ended with no benefits for the Blancos' after Luka Modric and Gareth Bale was forced to substitution.
Victory meant that the tables remained constant after Barcelona overcame Valencia 2-0.
Real Madrid couldn't make a bright start into the game with Gareth Bale injured in the second minute. Substitute Chicharito added something to the game with a teriffic header that tested Kameni's athletic feat.
However, the deadlock was broken when Ramos nodded into the net from a Ronaldo free-kick. The Portugese assisted Ramos in a wonderful freekick, only for the free standing Spaniard to tap home.
Kameni was called into action for the second time. James scored a half volley 22 yards away, only for the Malaga shot-stopper to make a tremendous save.
But the highlight in the first half was when Cristiano Ronaldo nutmegged Sergio Sanchez with a spectacular chop.
Real Madrid missed Luka Modric in the second half and Illara was introduced.
Madrid made a spectacular move then. Ronaldo produced a wonderful backheel pass to Chicharito who returned the ball back to Portugese. Cristiano dribbled down two before passing to James who was fouled inside the penalty area.
However, to add more agony, Ronaldo hit the resulting penalty into the bar.
The second goal was a genius move from James, Ronaldo and Isco. James played a one-two with Isco and then another with Ronaldo who slid a pass for the Colombian to score a stunning curl shot.
Just minutes later, Pepe watched in agony how Juanmi scored a free header to bring Malaga back into the game.
Ronaldo eagerly waited for his chance and it came in the 92nd minute. Pepe cleared a ball which Chicharito controlled excellently to assist Ronaldo who scored his 50th goal this season with a tap-in.
The last kick of the game produced another clear-cut chance. Isco delivered a ball for Chicharito who passed to James. The Colombian returned the ball for Portugese who failed to score into the free net.