Paula was spotted partying with gay adult film director/drag queen Chi Chi LaRue at Jeffrey Sanker's RED Nightclub at HERE Lounge in West Hollywood.
Paula also mingled with Girl Bar & Dinah Shore producer Sandy Sachs, who was the inspiration behind the "L Word's" Dawn Dembo character.
As previously reported on AccessHollywood.com, on Tuesday Simon Cowell would not confirm or deny that Paula was headed to his new reality performance competition.
"You'll have to wait and see Ryan…you'll have to wait and see," Simon coyly said during an interview with Seacrest on Tuesday morning on KIIS FM's "On Air with Ryan Seacrest." He continued, "Interestingly, since we made the announcement, everyone has been on the phone."
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