Yea the paper shouldn't be a problem, but it's not bad to be on the safe side. Paper can ignite according to google at around 480F, google also says the exhaust manifold can get up to 1200F. Of course don't put the paper against the manifold and it should be fine, but the paper doesn't do much, not like there's studs under the engine bay to staple it to lol.
125C rated wire is 257F, so the paper ignites at a higher temp than what the wire is rated for, but I've worked with that wire before, even with 300c solder iron temps it doesn't melt while soldering.
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