Writing with quotation marks ~ When do you start a new paragraph?

[Bella R]

Hi everyone! Ok so I'm writing a short story for my english class.. and I have a question on when to start a new paragraph...

Here are the two options, can you tell me which on is correct?:

1.I looked over across the isle and smiled at the girl. "¡Hola! " I squeaked. "Hi!"
The girls eyes met mine and she critically looked me over. I suddenly felt protective of my sweatpants and tee-shirt.

2.I looked over across the isle and smiled at the girl. "¡Hola! " I squeaked. "Hi!" The girls eyes met mine and she critically looked me over. I suddenly felt protective of my sweatpants and tee-shirt.

THanks!!
The difference is that one has one paragraph and one haas two paragraphs
I say "hola" and than "hi"

mostly just to let the reader know what hola is in spanish. lol

[mizzy yama]

whats the difference?