I frankly don't see anything wrong with "paragraph break". However, some professors used to say "indent" (which was really some other thing).

you could use the word "gap", but i dont know how you could put it together with the word "paragraph"
gap in paragraph or
paragraph gap

good luck

To add some weight to the proposals of my distinguished colleagues, here is an explanation and series of entries from LGDT:

indention (acdfghi)
The setback of a line of type from the normal vertical alignment established by the other lines, to mark a new paragraph, etc. (a)
Blank space at the beginning of a line, setting it back from the other lines in the left-hand margin. (c)
Contexte(s): The first word of a paragraph is usually indented. (i)

Synonyme(s):
indent (d)
indenting (d)
indent of a line (e)
new paragraph (h)
paragraph break (h)

That is, "paragraph break" is perfectly good English, and, frankly, much more applicable to the function your text describes than indentation (which is a tab operation).

As for the *code* that is entered when you hit "Enter" in MS Word or Corel WordPerfect -- that is called a "hard return."

I have a doctorate in translation from Brown University and teach university courses in translation from Spanish to English, by the way, if you need to back up the validity of your sources for your prof.!

Hola. Just strolling by to suggest this combination of paragrapha I happened to find by chance (as usual) in link below:
"Sample 1.1: 2 paragraphs (showing the HTML)...
<P>Here is the next paragraph. Here is the next paragraph. Here is the next paragraph. Here is the next paragraph.</P>".
Check link, one never knows.I've yet to start my own webpage. I still need to find a good reason for it too. I do know one command at least: ENTER...to submit answers! Good suerte :)

By the context, it's talking about the actual "break" not the result, besides, it's in line with its "colleague": page break.
I think that if your mentor doesn't like the term, he should suggest one himself, or keep to himself.