Working carefully is more important than the exact technique you use. Some people prefer the paper and others are against using it. It doesn’t affect the result; If you are sloppy the paper won’t save you.
Whether you use the paper or not, the end result should be a minimal amount of backlash at the tightest spot (note that the gears may not be perfectly round). When you check the gear mesh, rotate the spur gear into various positions.
If you can detect even the slightest amount of click-clack between the pinion and spur gear, whether it’s by feeling, seeing, or hearing, it’s not too tight. Anything looser than this is unnecessarily loose.