Papyrus is laminated material made from thinly cut strips from the stalk of cyprus papyrus plant. It is hand made and is not paper. Paper is made from the completely seperated fibers of any number of materials soaked and then sieved to produce thin sheets of matted fiber.
After people make papyrus, they use it to paint pictures, send correspondences or record all kinds of events using oil or gauche colors, inks or paints in the ancient Egyptian written language now called "Hieroglyphics".

References
http://www.beshay.com/paphist.html