The Magic Keyboard is a Smosh object from My Magic Keyboard Changes REAL LIFE!
Found in Ian's trash, the keyboard makes the world function as if it were a Windows XP computer. It can search for and delete things, copy a selected item, can fast forward and play back anything that moves, can play music like a regular keyboard, replace a selected item with another item while one trait from the item replaced still retains, and entirely shut down the world.
In the episode, Anthony used it to find his car keys, delete Ian's trash, play music, copy a $1 Bill, undo and redo Ian tripping, replace Ian with a hot chick, replace his old car with a Ferrari, and rewind and fast forward what the girl with Ian's voice was saying. After many Ctrl+Z attempts to close Hot Girl/Ian, he tries Ctrl+Alt+Delete to try to close it, though it ends up causing Anthony to force a shut down of reality.