Her father was the senior master sergeant Johan Wilhelm Paues (1837–1920) and her mother was Gustava Anderson.
Paues' best-known siblings were Johan (1876–1942), a businessman and diplomat and Erik (1879–1952), head of the central organization for the Swedish textile industry.
Paues became PhD at the Uppsala University in 1902, one of the first women in Sweden to obtain this degree in Germanic languages.
One of Paues' students was Gunnar Heckscher, later a professor and leader of the Conservative Party in Sweden.
Paues was awarded the title of Professor by the Swedish Government in 1934, the first woman to receive this honour.