How to have Java method return generic list of any type?

No need to even pass the class:

public <T> List<T> magicalListGetter() {
    return new ArrayList<T>();
}

private Object actuallyT;

public <T> List<T> magicalListGetter(Class<T> klazz) {
    List<T> list = new ArrayList<>();
    list.add(klazz.cast(actuallyT));
    try {
        list.add(klazz.getConstructor().newInstance()); // If default constructor
    } ...
    return list;
}

One can give a generic type parameter to a method too. You have correctly deduced that one needs the correct class instance, to create things (klazz.getConstructor().newInstance()).

Another option is doing the following:

public class UserList extends List<User>{

}

public <T> T magicalListGetter(Class<T> clazz) {
    List<?> list = doMagicalVooDooHere();
    return (T)list;
}

List<User> users = magicalListGetter(UserList.class);

`

Let us have List<Object> objectList which we want to cast to List<T>

public <T> List<T> list(Class<T> c, List<Object> objectList){        
    List<T> list = new ArrayList<>();       
    for (Object o : objectList){
        T t = c.cast(o);
        list.add(t);
    }
    return list;
}