My experience is that this is more complex than is initially evident. There are a few different ways to to set Z-Zero.
1. using the paper method you described. The advantage is that it does not take any special equipment, batteries or understanding complex systems to work.
2. Using an electronic version of the paper technique
http://www.ctctools.biz/electronic-z-axis-pre-setter-with-led-g09/ . I use something similar to this. It is 2.000 from bottom to top. The spring loaded plunger gives me the ability to overtravel a tiny bit without damage. You place this on your part where you want to zero Z axis to. When the tool touches the top plunger an LED lights up.
3. You can use a tool table. This is a feature of most control systems that lets you very carefully measure the relative length of your tools and store them in a tool table. Then you should be able to touch off to the Z Zero point with one tool and then switch out tools of various lengths without reseting the Z-Zero. This is a simplistic explanation and the devil is in the details including
3a: Are you using tool holders that register the tool holder to the mill in a repeatable way to get the accuracy you are looking for?
3b: you will still have to initially set the Z Zero anytime Z Zero changes. For production runs were you use a setup for days, weeks or years and multiple tool changes, this could pay off big time. If you are like me and most everything is a one-off, I am not sure it sames much time. I can change the tool and reset the Z Zero with the new tool in under 2 minutes and so the work to setup and maintain a tool table just does not seem like a good time trade-off. Others might have a different opinion though.
4. I think if you are sign-making and using standard thickeness materials like say 3/4" wood and your accuracy only has to be 0.01" or so then you may have other options like a z setting tool that plugs into the control (Mach3) and works like a Probe to automatically set Z to a know height. Just remember have a know height above the table for you tool only works if you material Z Zero point is also a known height above the table.