My first thought is that the paper has to much resolution. Remember you can add that resolution after the sim. is done and therefore getting around having to calculate all that geo.

Second, make sure the paper geo is clean i.e. good normals, remove excess vertices etc.

Third, this might be a good place to start for paper - https://area.autodesk.com/blogs/dunca...ok_with_ncloth

Hope this helps.