Re-posting this one temporarily for the folks still struggling with Blogger.
Edit 09/2020: I’m being told that the most recent changes to Blogger mean that this option is no longer there. Sorry.
For those of you who are struggling with the new Blogger format and trying to figure out why you no longer have paragraphs here’s how to fix it.
Apparently the good folks at Google believe that EVERYONE codes their posts in HTML cause the default setting is to require HTML code to create a paragraph break. Nice huh?
Anyway, go to the screen where you type in new posts. On the right hand side is a list of menus for various settings, click on the one that says Options and has a gear icon. At the bottom of the menu is the option for Line Breaks. Default (when they forced you to change) is “Use <br> tag”, change it to “Press Enter for line breaks”. Click “done”. Presto, paragraph breaks where you want them.