Hi, you said that she is in her crate all day and at night, too. That seems like where she spends most of her time and so she is used to it and feels safe in her crate. I would just move it out to wherever you are when you are home and leave the door open. Maybe entice her to come out with one of her favorite toys and spend some extra time playing with her.
The newspaper and a form of discipline will not get the results you are looking for. I would hate to see her begin to fear you and want to spend all her time in the crate because she is afraid she is going to be smacked with the paper. You might try ignorning her when she is doing something you don't like. It works very well with our Yorkie, although she does whine at first. as we ignore it the time gets to be less and less until she stops.
There are many members on here that can give you great advice. They are not criticizing, they just know what works, best. Listen to them and you can choose the advice that works best for you.
Good luck and keep us posted. Think treats, praise, and love. It works with Yorkies because they are very intelligent, not the average dog.