If you have access to a copy of "Snookey" Williamson's Winchester Lever Action Guns there is a good article in the back about using teflon tape for paper patched bullets. I believe the article was writtern by Vernal Smith.
If you load for Winchester lever actions, the book by Williamson is well worth getting. It has a lot of information on load data for every cartridge that was chambered in Winchester Models 1886, 1892 and 1894.