[Plugin: Front-end Editor] Problem with paragraph tags <p>

Im using custom field template plugin to write some multi-line custom fields. I click publish, check out my new post, all good. But every time I edit a Custom Field it strips out the <p> tags. The weird thing is that the tags are there when im editing. Its just that when i click save and the editing field its closed, the tags are ignored (and not shown on the source code).

Any ideas?