Paloma (voiced by Alexandra Lai), is a character introduced in the second season, is, on the outside, a Latina-Canadian classmate of Betty's who, after some harder starts, soon fits into her circle of friends.
Noah is jealous of her, because Betty spends more time with her than Noah. However, he eventually grew out of it. Penelope didn't like her until she saw Paloma has a collection of rare outfits and she tries to get her on her side, but failed because Paloma has nothing in common with her.
It soon becomes obvious, though, that she knows more about life off of Earth than she should, and she has some very strange abilities, which, when asked, are merely passed off as an uncanny "way with animals".
What was also weird was that in the first few episodes of Season 2 she appears in (as of the video game and cameo backgrounds in Season 2), she wore a pink shirt with red flower or a fuchsia butterfly, but in all other episodes starting with The X-Rays, she wears a red shirt with a yellow butterfly on it.
In the episode Pop Goes the Maxx, she pretended to be a psychic, and actually told things that came true on Betty's mission, when Betty later told her about how her visions came true, Paloma explained that she was only pretending, and that she would need a Tachyon Time Machine to tell the future, and that they don't have them on Earth, she then realized her error and chuckled nervously, making Betty suspicious.
Another example is in the episode The Collector, she unintentionally got Betty suspicious when she knew what a Popongo Papaya, an alien fruit was. However, Betty thought it was a coincidence because Betty is still a young child and she doesn't know any better.
The most obvious example that she has alien origins was in the episode The X-Rays, where in order to get Duncan to leave her alone, she turns her eyes to orange, catty eyes, and she lets out an alien growl.
Paloma has an interest in comic books. In The New Neighbour, she created a comic titled Ruby Red Avenger, which showed a titlular character that resembles Betty and nearly depicts the "Atomic Betty" persona. This may indicate that she at least knew part of Betty's alter ego (from conversations with Juanita) before the end of season 2, or it may have been coinidental.
Noah later colaborated with Paloma on Ruby Red Avenger in The Collector, where most of the copies they were trying to sell were damaged by Betty's cousin Kyle and Betty had to pay them the value of the damages.
She is one of the twin daughters of the villainess Golgotha, the queen of the planet Sharbena, whose people possess the ability to shapeshift into any living creature they desire. The people of the planet had lived in peace for centuries, due to no army being able to beat a race that could mimic them down to the last detail.
She had unsuccessfully tried to convince her own people that their powers were divine, and that the rightful place for Sharbenians was as rulers of the universe. In response, she unleashed an evil demon among the people, bringing a reign of terror across the galaxy. The people of Sharbena could not stop it, for the demon was not a living creature and could not be duplicated. Golgotha fell in love with the demon and they caused untold destruction.
The reign of terror was ultimately stopped by the best warriors from other planets, who had banded together to form the Galactic Guardians. The Galactic Guardians had sealed the demon in a box, but Golgotha managed to escape and hide out. In hiding, she gave birth to the demon's children, twin daughters.
Paloma had inherited her demon father's good powers (along with her mothers ability to shapeshift into any living creature). Paloma tipped off the guardians when her sister Pandora attempted a galactic takeover. To protect her, she was placed in the Galactic Guardians' witness protection program, hoping not to be discovered.
Under the program, Paloma is looked after by a Galactic Guardian named Juanita (Nissae Isen), who, on the outside, is introduced as Paloma's baby sister. Also, the Galactic Guardian were supposed to tell Betty about Paloma and the situation she was in before Paloma came to Earth, but for unknown reasons they didn't tell Betty about this. The Galactic Guardian thought Betty would find out about this and protect Paloma, which didn't at all.
Eventually, she is later discovered and captured by her twin sister Pandora, who had hatched a plot to sacrifice her in order to unseal their demon father from the box. Betty was told by Juanita and the others about Paloma's past, but Betty still thought it is coincidence and thought they got the wrong Paloma until she learned the hard way that Paloma is an alien.
Paloma is rescued by Betty and Juanita, and uses her powers (which shows her having some dragon-like skin and horns that replace her pigtails) to seal Pandora and her own father back in the box.