Like I understand that Paula is a racially insensitive ass kook, but this isn't one of those times.

Personally I think it'd be rude to intrude while they're trying to explain how to make it and whatnot.
I don't think Paula's intentionally racist. I think she's a dumb white woman who literally has no regard for any racial boundaries. She's racist, but she doesn't quite understand it.

She seems quite comfortable around them and doesn't seem to be acting any particularly negative way. I don't think she hates black people or dislikes them. Prefers white people? Perhaps. I think most people implicitly prefer their own race, to a certain extent. Not to the extent of Paula (to the point where it's racist), but I think most do.
Is this any excuse for her actions? No. But this video shouldn't be used to make Paula look bad.