A few hours into Graveyard Keeper, Paper becomes essential for you to progress in the game. Not only do you require it to complete an important task for the Inquisitor and package Flesh, it is also used to get Science Points at the Study Table.
So in order to get Paper during the early hours of the game, first you need to go into the Anatomy and Alchemy tab of your Skill tree and unlock the Hardspares skill. This will allow you to extract Skin from corpses.
Then, after raising your Graveyard Rating to at least 5 points to unlock the Church, craft the Church Workbench in the Alchemy Lab under the building. The blueprint for the Church Workbench is unlocked by purchasing the Paper Crafting skill in the Book Writing tab of the Skill Tree.
Now once you extract Skin from a corpse, you can bring it to the Church Workbench to craft Pigskin paper from it.
The Pigskin paper can then be used at the very same workbench to craft Clean Paper.
One Skin yields four Pigskin paper, and one Pigskin paper yields 4 Clean Paper.
Later on in the game you can also make Paper by using a Paper Press, but that can take a while to unlock.
You can check out a list of all our Graveyard Keeper guides here.