I’ve just starting using paper.js recently, after learning some simulation codes from dan shiffman’s nature of code book.

There was a good tutorial on using box2d in his book, so I tried to use that library for the physics simulation, and use paper.js for the rendering, and I rewrote the tutorial examples using paper.js.  I didn’t see much work on combining these two libraries (there was a youtube example on combining raphael.js with box2d, but that never got released).
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It’s great to see various physics simulations work in the web browser, such as this motor wheel bouncing falling balls.  I can also interface the physics library with my older creatures-drawing javascript routines using paper.js.
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Try the demo here.