Is there a way to display the user input in different color instead of black inside the editable textField or paragraph while typing?
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There are no standard / out-of-box solutions that I can think of that would do anything along these lines. There are also no plug-ins that I'm aware of, but there could always be ones I haven't heard about.
Appian's richTextEditorField() might help. But the default color is black, we have to format the content to change color. And the values of this field should be stored as HTML text in the backend
richTextEditorField - There is no such component in OOTB. Where did you get that from ?
It's from the Rich Text Editor plug-in.