My advice is to NOT try to newspaper, and then try to outdoor train the puppy. Small breed dogs are notoriously difficult to potty train, especially once they get it in their heads that it's "okay" to potty inside!
I'd go with crate training, and taking her out often, especially if she already prefers going outdoors!
I'd go with crate training, and taking her out often, especially if she already prefers going outdoors!