MouseLight is a spatially-aware standalone mobile projector with the form factor of a mouse that can be used in combination with digital pens on paper. By interacting with the projector and the pen bimanually, users can visualize and modify the virtually augmented contents on top of the paper, and seamlessly transition between virtual and physical information. We present a high fidelity hardware prototype of the system and demonstrate a set of novel interactions specifically tailored to the unique properties of MouseLight. MouseLight differentiates itself from related systems such as PenLight in two aspects. First, MouseLight presents a rich set of bimanual interactions inspired by the ToolGlass interaction metaphor, but applied to physical paper. Secondly, our system explores novel displaced interactions, that take advantage of the independent input and output that is spatially aware of the underneath paper. These properties enable users to issue remote commands such as copy and past...