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The following demo illustrates the pasteSettings property in addition to the advanced 'paste' toolbar item.

The advanced custom option is only available for the paste toolbar item and transforms the button into a drop down with format options.

Clicking on the paste button inside Editor's toolbar a drop down will open allowing to select a custom formatting options.

The pasteSettings property determines the default action for pasting inside the Editor.

In the following demo the pasteFormat="prompt" is applied which triggers a Window on paste event that allows to select the desired format.