I had a white girl call me Papi when I was 21, it felt weird. I never really had anyone else do it.
now I'm 40+ and I love it. there's not even porn where they say it sexy enough. now, I don't have any children... but some of the above replies explain it (the way I see it); it's not "hey you're my father and you're abusing your daughter", it's more of a really powerful "I need you, you are my everything, and I will do whatever makes you happy" thing.
if you can separate 'Papi' and 'Daddy', give it a try and see if you can separate one situational 'Daddy' and the other.
we're all different, so whatever makes you feel best... is best. getting other views is a great way to remove stigma about stuff, you know, the social brainwash people put in our minds from the time we're children. be free and live the way you want.
otherwise, what's the point?