Hi,
So currently we have an aspx page which is using a user control ascx which has Cute editor on it. The pasting issue happens only in this case.
If we place Cute Editor on a standalone aspx page and not have the middle layer of the ascx control then it seems to work.
We are able to recreate the issue in a standalone project having an aspx page with ascx control having Cute Editor on it.
I will email it to you by tomorrow.
Thanks,
Priyanka